We once again find ourselves heading into a wonderful time of year. A time which brings about goldening leaves on trees, a discernible chill on the morning breeze, pumpkin spice everything, and new workers’ compensation loss cots and rate sets! So far 2022 is promising to bring about another wave of rate decreases.
New York is first out of the gate, approving an overall rate decrease of 6.4% effective 10/1/2021. The state advises that this loss cost revision reflects the experience of the two most recent policy years, as well as projected trends, benefit level changes, and changes in loss adjustment expenses.
According to the attached 2021 Loss Cost Filing the proposed loss cost change is based on the latest financial data reported by the Rating Board’s member carriers, which includes losses resulting from the COVID19 pandemic, and was derived by applying Rating Board’s standard ratemaking methodology. The terrorism and catastrophe loss cost provisions have also been updated with this revision. However, no explicit load for the risk of pandemics is included.
Florida followed suite announcing on Friday, 8/27/2021 a proposed overall rate decrease of 4.9%. If approved, these reduced rates will take effect on 1/1/2022. This continues the trend of continually dropping rates which Florida has been witnessing since 2016.
We will continue to monitor this activity and keep you informed as more states propose and approve the 2022 loss costs.