Commissioner Approves 7.88% Loss Cost Reduction

Pennsylvania Insurance Commissioner Michael Humphreys approved a 7.88% reduction in loss costs for policies incepting on or after April 1. The Pennsylvania Compensation Rating Bureau said the reduction in loss costs is a result of a 6.1% decrease in claim frequency as well as fewer large claims. The bureau said claim frequency is down a cumulative 42% since 2013 and loss costs have fallen 54% over the same period. The average payment per claim was $1,100 in 2022, compared to $1,500 in 2015. Prescription costs per claim are down 60% since 2015. “While the economic impacts from the pan...