By: Brett Findlay, ARM, CRIS, Sr. VP, Business Risk Specialist
NYS Department of Financial Services Approves Workers’ Compensation Rate Decreases
There have been significant changes applicable to New York State workers’ compensation in 2024. For the ninth consecutive year, an aggregate rate decrease is on the horizon. Furthermore, the New York State Assessment was dropped again in January. Also, the impacts to individual workers’ compensation policies from the changes to the experience rating (EMR) formula have been experienced by all policyholders since our last update.
Loss Costs and Rate Changes
In a press release dated July 16, 2024, the New York Compensation Insurance Rating Board (NYCIRB) announced that its filed annual loss cost indication with the New York State Department of Financial Services is approved and will become effective on October 1, 2024. The approved and published filing includes a decrease of 9.0% to the overall loss cost, or rate level. The change in rates will be implemented on policies renewing on or after October 1, 2024.
The impact of the loss costs, or rates, will vary depending on each individual classification code. The 9.0% overall loss cost reduction is an average of all class codes. For an understanding of the potential impact to your business and individual class codes utilized on your policy, please feel free to reach out to OneGroup using the contact information below.
It is important to note that these rate changes will not go into effect on any individual policy until October 1, 2024. 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.
NYS Assessment Decreases
In January, the New York State Assessment saw another decrease. This year the assessment dropped from 9.8% to 9.2% in 2023, even more so from 10.2% in 2022, and 11.8% in 2021. Overall, there’s been a nearly 20% 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 1, 2022. The formula is significantly different than it has been in the past and is affecting policyholders who’ve experienced workers’ compensation losses from both a frequency and severity standpoint. OneGroup has been monitoring the impact to policyholders, hosted multiple educational seminars, and developed materials to explain the changes in detail. The formula change has impacted many businesses, both positively and negatively.
Contact Us
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, Sr. 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.
For more information please contact Brett Findlay, Senior 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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