NY Compensation Insurance Rating Board Files Loss Cost Indication for 2023 Workers’ Compensation Rates
By Brett Findlay
There have been significant changes applicable to New York State workers’ compensation in 2023. None are as big as the 2022 change to the experience modification rating formula (or EMR), which some policyholders with effective dates prior to October 1st, 2023 have yet to see the effects of.
Yet again, an aggregate rate decrease is on the horizon, minor increases to both the maximum weekly payroll limitation cap and maximum weekly workers’ compensation benefit are now in effect, and the New York State Assessment dropped in January. Also, the impacts to individual workers’ compensation policies from the changes to the experience rating (EMR) formula have come to fruition.
In a press release dated May 15th, 2023 the New York Compensation Insurance Rating Board (NYCIRB) filed its annual loss cost indication with the New York State Department of Financial Services. An approved and published filing for the expected decrease of 2.6% of the overall loss cost level should be confirmed and announced soon. The change in rates would be effective on policies renewing on or after October 1, 2023. This will be the 8th consecutive year with an overall workers’ compensation rate decrease in New York State, should the approval be finalized.
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 using the contact information below.
Any potential rate changes will not go into effect on any individual policy until October 1, 2023. If your effective date is before that date, you will have to wait until your policy renewal before any potential 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 plan for your upcoming renewal.
Additionally, the maximum weekly payroll limitation/cap for eligible classifications has risen. Effective July 1st, 2023, the new cap is $1,718.15. This is a 2% increase from last year’s cap of $1,688.19 and a 7% increase from 2021 cap of $1,594.57. This will have an impact on the cost associated with eligible employers’ workers’ compensation premium. Furthermore, the maximum weekly workers’ compensation benefit rose from $1,125.47 to $1,145.43 effective July 1, 2023.
In January, the New York State Assessment saw another decrease. This year the assessment dropped to 9.8% from 10.2% in 2022 and even moreso from the 11.8% in 2021. Overall, there’s been a 17% decrease in the aggregate cost to policyholders since 2021.
As far as the new formula to determine Experience Modification Ratings, or EMR’s, those changes went into effect on October 1st, 2022. The formula is significantly different than in years past. OneGroup has been monitoring the impact to policyholders, hosted multiple educational seminars, and developed materials to explain the changes in great detail. The formula change significantly impacted many businesses, both positively and negatively. For more information on how you have been or will be affected, please do not hesitate to contact us directly.
So, what does this mean for New York State contractors? For any individual questions and/or concerns, please do not hesitate to contact Brett Findlay, Vice President of Business & Construction Risk.
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 your construction specific questions and concerns. OneGroup takes great pride in being at the forefront of industry trends and assisting others where we can. You can find out more about us here, or about our construction expertise here.
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.
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