New York State agents and insurers praised the passage late last month of a key workers compensation reform that will extend the rate-making authority of the New York Compensation Insurance Rating Board, and move the system to a loss cost method of calculating rates.
The bill, which has been passed by both legislative houses, awaits the signature of Gov. Eliot Spitzer.
“This legislation will allow for more competition and more choice in the workers’ compensation system, ultimately benefitting the consumers and businesses of New York,” said Gary Henning, assistant vice president for the American Insurance Association, a trade group for insurers. “Enactment of a loss cost system is a critical component of the workers’ compensation reforms that have been taking place in New York.”
Under a loss cost system, NYCIRB would develop and file prospective loss costs and supporting actuarial and statistical data, and would rely on each insurer to individually file the rates it will use.
The new method will better reflect industry-wide experience and directly related expenses and create a more competitive environment for workers compensation, said the Independent Insurance Agents and Brokers of New York.
IIABNY Chair Stephen R. Zogby said the new posting of the insurers’ individual loss cost multipliers should be “a valuable tool for agents and brokers, as well as their clients.”
Was this article valuable?
Here are more articles you may enjoy.