New York Workers' Compensation Rates to Go Up 9.3%

The third most populous state in the union approved a 9.3% workers' compensation rate increase, predominantly due to increase of costs in the overall delivery system."According to NYCIRB, data actually supported a loss cost level increase of 9.6 percent across all classifications but it proposed the 9.3 percent increase after considering no change in the loss cost provisions for terrorism, natural disasters and catastrophic industrial accidents.""The hike reflects a continued rise in the cost of claims, according to the industry’s filing. While claim frequency is mostly stable, indemnity costs are rising at an annual rate of about 5.3 percent and medical costs at about 5.1 percent."Last year the state approved an average 5.9 percent increase in loss costs."http://www.insurancejournal.com/news/east/2016/07/21/420878.htmThis becomes effective on 10/1/16.-PRH