The New York State Department of Financial Services (NYDFS) has approved an average 5.9 percent increase in workers’ compensation loss costs for new and renewal business to become effective on Oct. 1, 2015. The approval was announced by the New York Compensation Insurance Rating Board (NYCIRB) in a bulletin today.
NYCIRB said loss costs by classification will be published in a subsequent bulletin and posted on its website no later than Aug. 1. NYCIRB submitted its loss cost filing to NYDFS on May 12.
Commenting on the approved loss cost increase, NYCIRB Vice President and Chief Actuary Ziv Kimmel told Insurance Journal that “the increase in the loss cost level is needed in order to keep pace with increasing indemnity and medical costs in the state.”
NYCIRB is a non-profit, unincorporated association of insurance carriers, including the State Insurance Fund. In conjunction with the New York workers’ compensation law, the insurance law provides for the superintendent of insurance to designate a rate service organization to collect the loss, premium and payroll data from each carrier, summarize this information and develop an adequate rate structure. Since the enactment of New York workers’ compensation law in 1914, NYCIRB has been licensed as the official organization for this purpose.
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