NCCI Sees Stable Trends in New England

April 28, 2016

The National Council on Compensation Insurance says it is seeing generally stable trends in Connecticut, Maine, New Hampshire, Rhode Island and Vermont — five New England states where NCCI serves as a licensed rating and statistical organization.

“Overall, the NCCI states in New England are stable, with the loss cost filing adjustments ranging from -5.9 percent to +2.6 percent approved in this latest cycle,” said Laura Backus Hall, an NCCI state relations executive for these five states.

In Connecticut, the most recent loss cost filing approved was for a decrease of 3.9 percent. It was a third decrease approved in a row after four increases.

Commenting on key observations behind the latest filing figure, Hall said the claims frequency continues its downward trend. The loss experience also improved in the latest policy year. Hall noted that for Connecticut overall, loss costs have decreased 40 percent since the 1993 reform (Public Act 93-228), which made several benefit modifications to the workers’ compensation system.

In Maine, the latest loss cost filing for a small increase of 0.1 percent recently became effective on April 1. Observations in Maine showed improved experience. Also, despite a downward trend at the countrywide level, the claims frequency increased in the latest two policy years. However, overall loss costs are stable, Hall said.

In New Hampshire, the latest loss cost, effective Jan. 1, was for a 5.9 percent decrease. It was a third decrease in a row that NCCI filed in New Hampshire. For key observations, experience improved in the latest evaluated period. The indemnity loss ratio is also continuing to show decreasing trends.

However, Hall added, medical costs in New Hampshire still remain an important cost driver, making up 73 percent of the total benefit costs in the state.

In Rhode Island, NCCI has a loss cost filing pending in the state, proposed to be effective Aug. 1, for a decrease of 4.9 percent. That is a first filed decrease since 2009.

Consistent with other states, Rhode Island’s loss experience showed significant improvement from prior periods. The claims frequency has also declined in the last three policy years.

In Vermont, a loss cost filing for a small adjustment increase of 2.6 percent became effective on April 1. “A key observation in Vermont is that a little bit of deterioration on experience was behind that increase,” Hall said.

Hall noted that in the latest policy year for Vermont, the frequency of loss times claims increased, partially offsetting a decrease in indemnity and medical claims severity in the state.

Was this article valuable?

Here are more articles you may enjoy.