Frank Knapp\’s comments are way off base.
If \”our system works just fine\”, as he says, then other carriers wouldn\’t be having the same problems Companion is having.
Knapp\’s comments reflect a lack of understanding of the actuarial predictability of the WC line.
Concerns on large rate increases also reflect a lack of understanding of the WC system. No carrier operates as a non profit and sooner or later all will pull out with inadequate rates. The recurring residual market load increase and growth has occurred time and time again. States such as Maine, Kentucky, Florida and Georgia have all gone through crises induced by rate inadequacy.
The marketplace is always a better regulator of price than a regulator is.
Frank Knapp\’s comments are way off base.
If \”our system works just fine\”, as he says, then other carriers wouldn\’t be having the same problems Companion is having.
Knapp\’s comments reflect a lack of understanding of the actuarial predictability of the WC line.
Concerns on large rate increases also reflect a lack of understanding of the WC system. No carrier operates as a non profit and sooner or later all will pull out with inadequate rates. The recurring residual market load increase and growth has occurred time and time again. States such as Maine, Kentucky, Florida and Georgia have all gone through crises induced by rate inadequacy.
The marketplace is always a better regulator of price than a regulator is.