Below is a Flash Report update from Worker’s Compensation Executive E-newsletter. We’ve got some tough news for 2015 regarding rates.
Rating Bureau Settles On 6.7% Increase For 2015 Rate Filing
Insurance carrier executives at the Workers’ Compensation Insurance Rating Bureau just completed their deliberations and voted to file for a 6.7% average increase in workers’ comp pure premium rates for 2015. The vote came over the opposition of the business and labor representatives on the Bureau’s Governing Committee who saw a need for less than a 1% increase.
The Bureau is a private organization financially supported by and governed mostly by insurance carriers. Insurance carrier representatives hold a majority of the seats on the Bureau’s Governing Committee and do not need the public members support to make a rate filing of their choosing.
The filing reflects the increase over the advisory pure rates approved last year by Insurance Commissioner Dave Jones for 2014, but are an 11.4% increase over the average rates that carriers currently have on file.
The increase in rates is being driven by a number of factors including higher loss development trends and the continued increase in the frequency of claims. Stay tuned for additional coverage.
This is why its crucial that you have a contractor specialist broker who shops your rates effectively and has extensive markets to place your risk.