NY Compensation Insurance Rating Board files Loss Cost Indication for 2022 Workers’ Compensation Rates
By Brett Findlay, ARM
UPDATE: This article has been updated since its original publish date of May 31, 2022.
There have been significant changes applicable to New York State workers’ compensation this year – including an aggregate rate decrease on the horizon, an increase to the maximum weekly payroll limitation, and changes to the experience modification rating (EMR) formula. 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 13, 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. An approved and published filing for the expected decrease of 8.7% of the overall loss cost level was then announced on July 15, 2022.
The change in rates is effective on policies renewing on or after October 1, 2022. This is the seventh consecutive year with an overall workers’ compensation rate 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.
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. Regardless of when your effective date is, you should know the exact rate changes to your classifications sooner rather than later. It’s important to not only forecast the future costs of your program, but also to develop a marketing plan for your upcoming renewal.
Additionally, the maximum weekly payroll limitation/cap for eligible classifications has risen significantly. Effective July 1, 2022, the new cap is $1,688.19. This is a 5.5% increase from the prior years’ cap of $1,594.57. There will be an impact on the cost associated with eligible employers’ workers’ compensation premium.
A new formula to determine Experience Modification Ratings, or EMR’s, will go into effect on October 1, 2022. This formula is significantly different than in years past. OneGroup has been monitoring the formula and will be hosting an educational seminar to discuss in greater detail. This is a very important item, as there will be significant impacts to a number of businesses.
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 BFindlay@OneGroup.com
This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.
Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.
Find this Article Helpful?
Visit our Library of Resources for More!
ONEGROUP EXPERTS ARE READY TO HELP
Fill out the form below and an expert from OneGroup will contact you.
For Immediate assistance call 1-800-268-1830
Coverage cannot be bound or altered and a claim cannot be reported without confirmation from a representative of OneGroup.