New York Workers’ Compensation insurance loss costs are set to decrease by an average 9% this fall according to a recent action by the state Department of Financial Services (DFS.) The New York Compensation Insurance Rating Board (NYCIRB) announced last week that DFS had approved its new loss cost filing, effective October 1, 2024.
Loss costs are values calculated by the NYCIRB and, for each rating classification, include provisions for:
- Expected losses
- Loss adjustment expenses
- Terrorism
- Natural disasters, and
- Catastrophic industrial accidents.
They are not rates. Individual insurance carriers and the New York State Insurance Fund (NYSIF) must apply additional factors, known as “loss cost multipliers,” that include provisions for carrier overhead expenses and anticipated profit. A list of carrier loss cost multipliers and ”expense constants” (a flat dollar amount that covers the cost of issuing a policy) approved as of July 1, 2024 is available on the DFS website.
The 9% decrease is an average. The loss costs for some specific rating classifications may have increased. However, this the eighth consecutive year that Workers’ Compensation insurance loss costs have had an average decrease.
These resources are available on the NYCIRB website:
These links and other Workers’ Compensation information are also available on the Workers’ Compensation page in the Answer Center of our website.