The Massachusetts Division of Insurance has scheduled a hearing to discuss the rate filing made by the Workers’ Compensation Rating and Inspection Bureau of Massachusetts (“WCRIBMA”) requesting that its members’ average rates for industrial classes be increased by 19.3% and its average rates for F-Classes be increased by 20.0%. WCRIBMA represents more than 300 member carriers in the Commonwealth of Massachusetts. WCRIBMA’s rate filing notes that there have not been any rate increases since 2001 and provides three main reasons for the current rate increase request:
- The actual experience of insurers writing workers’ compensation coverage in Massachusetts has continued to deteriorate. Reported losses, both before and after development, are higher than they were last year;
- For the first time in seven years, the predicted net trend in loss ratios (which takes account of changes in claim frequency and claim severity relative to changes in wage levels) is positive, reflecting reasonable expectations that the costs of claims will rise faster than wages; and
- Workers’ compensation insurers have less opportunity than they have had in the past to offset underwriting losses with investment income. Current yields on U.S. Treasury securities remain at historically low levels that have not been experienced for the past 50 years.
The hearing will take place at the Division of Insurance, 1000, Washington Street, Boston, MA on Friday, March 30, 2012 at 10:00 A.M.
Click here to view the official announcement. Click here to view the rate filing along with pre-filed testimony.
