Insurance Department Reviewing Proposed 9.9% Loss Cost Cut

The Delaware Insurance Department is reviewing a recommendation by the state’s Compensation Rating Bureau to reduce loss costs in the voluntary market, by 9.94%, and residual market rates, by 7.23%, on Dec. 1. A memo by bureau actuaries that accompanies the filing says claim frequency declined, by 15.3% in policy year 2016, from 2015. That followed a 5% frequency increase in 2015 and a 14.2% decrease in 2014. “While the year-to-year changes show opposite signs for these recent policy years, overall frequency continues to decline,” the memo states. Vincent J. Ryan,...