New York Department of Insurance Superintendent Gregory Serio announced that there will be no change in the average workers’ compensation rate in New York State. Combined with a 1.2 percent decrease in assessments, this will mark the eighth consecutive year overall average rates remained stable or were decreased. Since 1995, New York State has seen an overall reduction of over 35 percent—an over 28 percent reduction since the historic 1996 workers’ compensation reforms.
“The decision to keep workers’ compensation rates stable again this year provides for the continued restoration of the worker’s compensation system— which means even more jobs for New Yorkers and ensures New York’s strong economic vitality,” Serio said. “It is clear that the reforms championed by Governor Pataki in 1996 continue to work for New Yorkers. The reforms have made it possible for New York to make tremendous progress in reining in the cost of workers’ compensation, while ensuring essential benefits to injured workers.”
The rate decision will take effect Oct. 1, 2002, and will be reflected in rate notices that insurers will send to employers immediately. In addition, the approved rate includes a new disaster preparedness component. For the first time, the state will allow insurers to build “catastrophe loads” into their reserves to better manage potential disasters and ensure continued stability in the workers’ compensation system.
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