Massachusetts Insurance Commissioner Julianne Bowler has approved a 3.0 percent overall average rate reduction in workers’ compensation rates, a savings of $32.6 million in premiums paid by employers. The new rates take effect in September.
The industry’s Workers Compensation Rating and Inspection Bureau of Massachusetts had requested in March that rates be increased by 1.0 percent starting Sept. 1. The Division of Insurance brokered this 3 percent cut with WCRIB along with the attorney general’s office. Paul Meagher, president of WCRIB, said the bureau agreed to the 3 percent rate reduction in order to avoid a lengthy rate case and give employers and insurers additional time to prepare for the rate change.
This is the seventh reduction since 1994, over which period rates have dropped a cumulative 60 percent.
In a related matter, Bowler directed WCRIB to take steps to improve the quality of data that is submitted for future rate cases. She said she wants periodic independent data audits and the results of those reported to the department. The DOI has been questioning data submitted by American International Group. WCRIB omitted the AIG data from its filing due to the state’s concerns.
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