Ratings Board Releases Loss Costs for Job Classifications

Friday, August 3, 2018 | 0

The New York Compensation Insurance Rating Board has released new loss costs for hundreds of employment classifications, which insurers use to help determine premiums.

Tim Dodge

The loss costs take effect Oct. 1. The rating board also released rating values and experience modification ratios in its revised rating plan manual.

In May, the board recommended an 11.7% overall loss cost level, and the Department of Financial Services approved it last month. It marks the third-straight year that the department has fully endorsed a recommended rate cut.

"Overall, that's good news for employers, although some classifications will see an increase and others will see a decrease," said Tim Dodge, assistant vice president for research at Big I New York, which represents independent insurance agents in the state.

A few examples of loss-cost changes: 

• General carpentry dropped, from $17.27, to $15.69.
• Concrete workers and drivers dropped, from $3.59, to $3.35.
• Horse racing workers dropped, from $21.33, to $18.30.
• Some classifications' cost increased, including irrigation workers and drivers, which went from $15.57, to $18.05.

"As a reminder, the published values, including the loss costs by classification and the provisions for terrorism, natural disasters and catastrophic industrial accidents are not rates," the board said in its filing. "Therefore, insurers must apply their approved loss cost multipliers to the loss costs in the manual to develop final rates."