Favorable Loss-Development Trends Point to possible mid-year Rate Cut

SAN FRANCISCO – Favorable trends observed in data that the Workers’ Compensation Insurance Rating Bureau collected from carriers through the end of last year point to a possible mid-year rate decrease this summer. However, Rating Bureau actuaries still have to finish crunching numbers on loss-adjustment expenses that could erase most, if not all, of the potential decrease. Tony Milano, vice president and actuary for the WCIRB, said during an Actuarial Committee hearing Wednesday that the most recent data indicates a loss ratio that is nearly 14.5 percentage points lower than what...