Update on 2022 Workers’ Compensation Rates

NY Compensation Insurance Rating Board files Loss Cost Indication for 2022 Workers’ Compensation Rates

By Brett Findlay, ARM

New York State employers may benefit again from an aggregate rate decrease to their workers’ compensation programs over the coming year.

In a press release dated May, 13th 2022, the New York Compensation Insurance Rating Board (NYCIRB) announced they’ve submitted their annual loss cost indication with the New York State Department of Financial Services. They’re requesting a decrease of 8.7% in the overall loss cost level, or workers’ compensation rate, in New York State.

The loss cost indication is subject to review and approval by the NYS Department of Financial Services. This decision is typically published in mid-July.

Any potential change in rates will become effective on policies renewing on or after October 1, 2022. If approved, this would be the seventh consecutive year with an overall loss cost decrease in New York State.

The impact of the loss costs, or rates, will vary depending on each individual classification code. For an understanding of the potential impact to your business, please reach out to OneGroup. 

So, what does this mean for New York State contractors? It means that there is potential for better renewal options for your workers’ compensation programs. New York contractors have been subject to some of the highest workers’ compensation rates in the country. If the new loss cost filings are approved, there is potential for further relief for some employers.

It is important to note that any potential rate changes will not go into effect on any individual policy until October 1, 2022. If your effective date is before then, you will have to wait until your policy renewal before any rate changes apply.

This degree of rate fluctuation could cause volatility in the insurance marketplace. Insurance carriers may look to using higher loss cost multipliers, among other possibilities, in order to offset rate decreases. You should be prepared for this, as should your broker.

OneGroup has a team of specialists, dedicated to risk management and construction industry specific insurance issues. We’re able to serve as a resource to your organization for all of your construction specific questions and concerns.

For more information please contact Brett Findlay, Vice President Business Risk Specialist at (315) 280-6376 or [email protected]