Delaware Insurance Commissioner Matt Denn said he would approve no increase in costs for voluntary market workers compensation rates and a 2.7 percent hike in residual market or assigned risk rates.
In so doing, he rejected higher bids by the industry. The Delaware Compensation Ratings Bureau, which submits an application for the “loss cost” calculation upon which all workers compensation insurance companies base their rates, had applied for increases of 4.05 percent in the loss costs for the voluntary market and 6.72 percent for the residual market.
By law, Denn can only approve or reject the DCRB application. However, he indicated to DCRB that if it submitted a new application with no average increase for the voluntary market that includes most employers and 2.7 percent for the residual market, he would approve it. DCRB submitted the new application.
“The cost of workers compensation insurance is a major concern for Delaware businesses, and independent actuarial analysis of the rate application indicated to me that a rate increase is not necessary to maintain the fiscal health of insurers for most policies,” Denn said.
This is the second filing for workers compensation rates since Denn took office in January 2005. He revamped the process, ordering an independent actuarial review and holding public hearings on the rate requests.
In 2005, he reduced the increases requested by DCRB by 20 percent. The allowed increase in 2005 was about half the previous year’s increase, before he took office and revised the review process.
Was this article valuable?
Here are more articles you may enjoy.