Department Orders 8.8% Increase in Residual Market Loss Costs

Loss costs for the voluntary market in South Carolina will soon drop for the fourth straight year, but employers in the assigned-risk pool will see a significant increase starting April 1, the state Department of Insurance announced. A week after department Director Ray Farmer approved a 6.6% average loss cost decrease for the voluntary market, he said the residual market loss costs would climb by an average of 8.8% for 2021. The assigned risk increase is determined by applying a new multiplier of 3.127 to the voluntary market rates. The increase was needed because of excessive...