The New York Compensation Insurance Rating Board (NYCIRB) has proposed an 11.7 percent decrease in the state’s overall loss cost level. The NYCIRB is a non-governmental rate service organization.

The rate change was proposed in their 2018 loss cost filing with the New York Department of Financial Services (DFS) who will need to approve the change for it to take effect. If approved it would go into effect October 1, 2018 this year.

The change is based on data from the Rating Board’s member carriers, taking into consideration like policy year 2016 experience, prospective claim cost, frequency and wage levels, LAE, standard legislation and regulation, terrorism provision and provision for natural disasters and industrial catastrophes.

DFS approved a decrease of 4.5 percent in the loss cost level in July of 2017 which went into effect October 1, 2017. According to NY Governor Andrew Cuomo, the decrease could save New York employers $400 million in work comp premiums in 2017. The decrease last year was attributed to cost savings measures passed in the 2018 budget and general system savings supported by the New York State Workers’ Compensation Board.

From Insurance Journal and read the Explanatory Memorandum from the NYCIRB.