The Massachusetts Division of Insurance is questioning data submitted by American International Group to support workers’ compensation rate recommendations in the state.
Just two weeks before the Massachusetts Workers Compensation Rating Bureau’s deadline for submitting a filing, state officials have called a special hearing into the AIG’s information used in the WCRB filing.
“There are a lot of questions we need to ask before we can be comfortable with the information. We see some inconsistencies,” Kevin Beagan, director of the DOI’s rating bureau explained when asked about the public hearing scheduled for Feb. 16 at 10 a.m.
Beagan said his concern is in part because AIG has several companies that combined represent one of the state’s biggest workers’ comp writers. Because AIG writes so much business in the state, the figures submitted by its companies heavily influence the overall filing made by WCRB.
The hearing notice maintains that the state wants to inquire into “the cooperative activities and practices” of members of the American International Group at any time during the period beginning 1990 to date, regarding submission of data relating to workers’ comp business to the WCRB for ratemaking. The purpose of the hearing is to “determine whether any activity or practice in connection with the submission of data to the WCRB is unfair, unreasonable, or otherwise inconsistent” with state law, the notice says.
AIG and its affiliates write about 25 percent of the state’s workers’ comp market but industry officials say the WCRB could still file without the AIG data if any problems can’t be corrected right away.
AIG had no comment.
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