Regulators Want to End Classification Relativities

Texas is the only state left that still allows insurance carriers to use state-devised classification relativities to determine workers’ compensation rates. But if the Texas Department of Insurance has its way in the Legislature this year, that could change. The move would allow the department staff to stop spending time devising the classifications every year, and would put most carriers on the same footing by utilizing the National Council on Compensation Insurance loss cost analysis, which many consider to be a more accurate assessment of experience and costs. Relativities “do...