DFS, WCB Announce Rate ChangesThe New York State Department of Financial Services (DFS) has approved a decrease of 1.0% in the overall loss cost level, effective October 1, 2020.
Loss costs, based on loss data provided by all workers’ compensation insurers, are determined for each classification code and used to calculate premium. They comprise the portion of a premium rate that represents the anticipated costs of claims and associated loss adjustment expenses. Loss costs are determined annually by the New York Compensation Insurance Rating Board (NYCIRB) and approved by DFS.
Effective October 1, 2020, new and renewal NYSIF policies will be issued with the DFS-approved loss costs, with a NYSIF loss cost multiplier of 1.27.
Renewal premium for NYSIF policyholders could be higher or lower than last year’s premium because of other changes in NYCIRB loss costs and additional factors that affect premium. For additional information, refer to R.C. Bulletin 2520 on the NYCIRB website.
WCB Assessment Rate Decrease
Effective January 1, 2021, the Workers' Comp Board (WCB) announced that its assessment charge for all employers will drop for a third straight year, to 11.8% of standard premium, down from 12.2% in 2020.
Standard premium is determined based on carrier-approved rates, any experience modification factor (an individual risk rating that adjusts for differences in losses) and applicable credits or surcharges.
As required by law, the assessment charge covers the cost of operating the WCB and various special funds.