Home > Property & Casualty > What’s behind the Massachusetts proposed 19.3% Workers’ Compensation rate increase?

What’s behind the Massachusetts proposed 19.3% Workers’ Compensation rate increase?

The Worker’s Compensation Rating and Inspection Bureau of Massachusetts (WCRIB) recently proposed a 19.3% increase in average rates for all new and renewal policies effective September 1st. There has been continued pressure on Workers’ Compensation insurance underwriters coming from an increase in losses coupled with interest rates being held down to nearly zero percent through 2014.

In a phone conversation with the WCRIB last week, the bureau was quick to point out that no decision had been made and that it plans to continue the rate review process for some time. The current belief is that any rate increase will be significantly lower than 19.3%, especially given the filing history of Massachusetts Workers’ Compensation rate filings proposed versus approved.  Rate increases have been very small to a slight negative, even more so amid a struggling economy, when the state is likely to view an increase as a significant impediment to recovery.

In 2008 and 2010, the WCRIB reviewed rate increase proposals of 2.3% and 4.5% respectively. Still, the 2008 rates were never approved, while the 2010 rates actually decreased by 2.4%. Furthermore, Massachusetts Worker’s Compensation rates have not increased since 2001, when they rose only 1 %. We encourage readers to continue following the WCRIB’s review process, and will pass along any new information on this rate increase proposal.

About the Author

David Bardelli is a Senior Vice President in the Property & Casualty Group and the Casualty Practice Leader for WGA. David has extensive knowledge with casualty risks, including technology healthcare, business services and miscellaneous manufacturing groups of all sizes.

617.646.0257   DBardelli@wgains.com   Connect with David on LinkedIn


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