A REVIEW OF CURRENT WORKERS COMPENSATION COSTS IN NEW YORK

Size: px
Start display at page:

Download "A REVIEW OF CURRENT WORKERS COMPENSATION COSTS IN NEW YORK"

Transcription

1 Consulting Actuaries A REVIEW OF CURRENT WORKERS COMPENSATION COSTS IN NEW YORK Scott J. Lefkowitz, FCAS, MAAA, FCA

2 CONTENTS Introduction... 1 Summary of the 2007 Legislation... 3 Consequences of the 2007 Legislation... 5 Assessments... 8 Closing Comments For additional information on the contents of this article, contact Oliver Wyman Actuarial Consulting, Inc. Scott J. Lefkowitz, FCAS, MAAA, FCA Oliver Wyman Actuarial Consulting, Inc. 48 South Service Road Suite 310 Melville, NY Scott J. Lefkowitz leads the Melville, NY office of Oliver Wyman Actuarial Consulting. He is a Fellow of the Casualty Actuarial Society, a Member of the American Academy of Actuaries, and a Fellow of the Conference of Consulting Actuaries. With over 27 years of experience in the insurance and risk management industry, Mr. Lefkowitz has provided consulting services to a wide variety of clients on all aspects of property/casualty risk exposure. Mr. Lefkowitz is an expert as respects workers compensation exposures, and currently researches workers compensation costs in a number of jurisdictions. OLIVER WYMAN ACTUARIAL CONSULTING CONTENTS

3 Introduction Following a period of accelerating workers compensation (WC) costs (benefits 1 ; claim related expenses 2 ; and assessments 3 ) in New York from 2000 to 2007, the state enacted legislation in 2007 with the expectation of materially reducing costs. Rather than decreasing costs, the 2007 legislation ultimately led to higher costs that exceeded pre-legislation levels. During the period from 2006 (the year prior to the legislation) through : - The incidence of permanent partial disability claims (PPD) in New York increased by 30%, while the countrywide incidence of PPD claims decreased by 14%. The relative incidence of PPD claims is currently 67% greater in New York than countrywide. - The incidence of lost time 5 (LT) claims in New York has been relatively constant, yet the countrywide incidence of LT claims has declined by 17% during the same period. - Rather than decreasing, as expected from the legislation, the average expected cost of a PPD claim in New York increased by 17%. The average expected cost of countrywide PPD claims increased by 8%. - The average benefit (indemnity and medical) cost of a LT claim in New York increased from $59,000 in 2006 to $85,000 in 2011, approximately 44%. During the same period, the average benefit cost of a countrywide LT claim increased from $44,000 to $47,000, approximately 7%. Note that current forecasts place the average benefit cost of New York LT claims in 2015 in excess of $100,000. This is prior to consideration of claim related expenses and assessment costs. - The average cost of claim related expenses in New York increased 26% from $5,600 per claim in 2006 to $7,100 per claim in Countrywide, the cost of claim related expenses increased 23%, from $4,700 in 2006 to $5,800 in Though the percentage increase to New York claim related expenses during this period was only marginally greater than countrywide metrics, the absolute cost of claim related expenses has been and remains materially greater in New York. - Collected assessments in NY increased from $516 million in 2007 to $963 million in Benefit costs include the cost of indemnity (wage replacement) benefits and medical benefits. 2 Claim related expenses refer to allocated loss adjustment expenses, also referred to as defense and cost containment expenses. In general, these include expense costs attributable to individual claims. The primary component of these costs is legal fees. 3 Assessments are surcharges paid to the Workers Compensation Board to fund various WC programs in NY. These programs are the Special Disability Fund (15-8), the Reopened Case Fund (25-A), the cost of running the Workers Compensation Board and other programs (151 and IDP), and the self-insurer s assessment (50-5). Only private (excluding public entities such as counties and municipalities) self-insured employers and groups pay the 50-5 assessment. 4 The most recently available insurance industry data is from LT claims involve lost work time and therefore include the cost of wage replacement benefits. LT claims include temporary disability claims, permanent partial disability claims, permanent total disability claims, and fatalities. Medical only claims (MO) are generally minor, low cost claims requiring short-term medical treatment with little or no lost work time and therefore no wage replacement benefits. Oliver Wyman estimates that the average benefit cost of a New York LT claim in 2015 will be over $100,000 while the average expected cost of an MO claim in New York is approximately $1,500. OLIVER WYMAN ACTUARIAL CONSULTING PAGE 1

4 Oliver Wyman s analysis of countrywide WC costs indicates that costs in New York are currently at levels commensurate with WC costs in California. These two jurisdictions represent the two 6 most expensive state jurisdictions in the United States. The purpose of this paper is to: 1. Briefly review the 2007 legislation; 2. Offer an explanation as to why both claim costs and assessments have increased since 2007; and 3. Discuss potential future cost levels. 6 The Oregon Department of Business and Consumer Services publishes a highly regarded biennial study that ranks each state according to WC costs. The Department released the most recent study in October of The top five states in the Oregon study are, in descending order, California, Connecticut, New Jersey, New York, and Alaska. The Oregon study is based on actual premium rate data, which therefore incorporates the variation of expense and profit provisions charged by different insurers. Additionally, the Oregon study utilizes a distribution of employee classifications reflective of Oregon employment. Oliver Wyman is in the process of completing a similar ranking, but based on the actual cost of benefits and claim related expenses, prior to the incorporation of any other expense, profit, or tax provision that are typically included in premium rates. The Oliver Wyman study uses a more general countrywide average distribution of employers, rather than a distribution specific to Oregon. Finally, the Oliver Wyman study uses the most recently available published cost of indemnity, medical and claim related expense costs in each state, and is therefore based on somewhat more recent data than the Oregon study. The general ranking of the Oliver Wyman study is quite similar, but not precisely the same, as the Oregon study. The Oregon study can be found at: OLIVER WYMAN ACTUARIAL CONSULTING PAGE 2

5 Summary of the 2007 Legislation Legislation enacted in 2007 included the following five key components: 1. Increase to the maximum and minimum weekly benefits. The maximum and minimum wage replacement benefits had been $400 and $40 per week since The legislation implemented a transition to a maximum benefit equal to 2/3 rds of the state average weekly wage (SAWW) effective July 1, 2010, updated annually from that point forward. The current maximum weekly benefit in New York is $ effective July 1, 2014, more than double the $400 in effect prior to the law change. The minimum weekly benefit increased to a fixed amount of $100 per week effective July 1, Elimination of lifetime permanent partial disability (PPD) awards. The primary cost driver in New York had been non-scheduled 7 PPD claims. Indemnity benefits for non-scheduled PPD claims accounted for 40% of total WC (medical and indemnity) benefit costs in New York. Prior to the legislation, benefits paid for non-scheduled PPD claims were for the duration of the disability, which in most circumstances translated into lifetime disability awards. The legislation capped the duration for all but the most serious non-scheduled PPD awards to a maximum of 525 weeks. 3. The Special Disability Fund (SDF or 15-8) was closed to new claims. The SDF mechanism reimburses employers for a portion or all of the benefit 8 cost of qualifying claims. Assessments provide funding for the SDF. SDF assessment costs increased from ~$400 million in 2001 to ~$600 million in The 2007 legislation closed the SDF to claims with dates of loss on or after July 1, In the short term, moderate cost increases were expected because insurers and self-insured employers must pay for claims that are no longer SDF eligible as well as pay for assessments required to fund claims in the SDF until all such claims are closed. In theory, over the longer term, decreasing assessments (as required SDF funding declines to zero) will exactly offset costs shifted back to insurers and self-insured employers. However, a realistic assumption that insurers and self-insured employers will manage claims for which they retain full financial responsibility more efficiently led to expectations of a net savings over the long term. Additionally, there were general expectations that closing the SDF to new claims would stabilize funding requirements, and therefore assessment costs. 7 Scheduled permanent partial disability claims provide for a specified number of weeks of benefits for loss of use of certain body parts, such as fingers, hand, leg, foot, etc. Non-scheduled claims would include back, neck, and injuries to body parts not otherwise listed on the published schedule. 8 Administration of claims approved for SDF relief remains the responsibility of the carrier or self-insured employer. The SDF reimburses employers for a portion or all of the benefit cost of these claims. Claim related expenses, such as defense, surveillance, court, or administration related costs, remain the financial responsibility of the carrier or self-insured employer. OLIVER WYMAN ACTUARIAL CONSULTING PAGE 3

6 4. The Aggregate Trust Fund (ATF) was expanded to include PPD claims. Prior to July 1, 2007, the ATF required an insurance carrier 9 to deposit the present value of future indemnity benefits for permanent total disability (PTD) claims and death claims. The deposit was avoided if the claim was settled within 6 months of disability classification. If the deposit occurred, the ATF attempted to settle the claim as well, but at lower settlement amounts than carriers with the ATF retaining the difference. The ATF requirement was not a material issue because PTD claims and fatalities represented a small portion of system benefit costs (~5%). The legislation expanded the ATF requirement to include PPD claims, which represent the bulk of WC costs in New York. The ATF mechanism generally favors claimants, though claimants and insurance carriers both benefit by avoiding an ATF deposit. The expectation was that expansion of the ATF would modestly increase costs. 5. Implementation of Medical Treatment Guidelines. The 2007 law provided for the implementation of medical treatment guidelines. The cost impact of this element of the 2007 law change was not estimated at the time the legislation was passed. Implementation of the guidelines began in Generally, the material cost increases associated with the increases to the maximum and minimum weekly benefits were expected to be more than offset by the material cost decreases associated with eliminating lifetime PPD awards, resulting in a substantial net cost savings 10. Additionally, closing the SDF to new claims was expected to stabilize funding and therefore assessment costs. In response to the legislation and based on these expectations, WC loss costs 11 decreased by 18.4% effective October 1, 2007, with an additional reduction of 6.4% implemented effective October 1, Initial expectations were overly optimistic. Since 2007, WC benefit costs in New York have increased to levels greater than the cost level prior to the 2007 legislation. Equally important, assessments required to fund the SDF increased by 50% from 2007 through 2013, and total assessments (for all programs) increased by almost 90% during this period, from approximately $516 million in 2007 to $963 million in The ATF requirement applies only to private insurance carriers. It does not apply to self-insured employers nor does it apply to the New York State Insurance Fund. 10 Other elements of the legislation were expected to increase (ATF expansion) or decrease (Medical Treatment Guidelines) costs. The change to the maximum and minimum weekly benefits and the elimination of lifetime PPD awards were the elements expected to have the greatest impact on costs. 11 Loss cost refers to the expected cost of benefits and claim expense per $100 payroll. Insurance companies subsequently factor in provisions for overhead, other expenses, and profit to generate a final premium rate. Loss costs are a direct measure of claim costs. Premium rates will generally increase (or decrease) by the same percentage change as loss costs, assuming no change to insurance company expense provisions. 12 Total assessment costs in 2006 were approximately $770 million (estimated based on Workers Compensation Board data). Assessments costs decreased in 2007 to $516 million, perhaps in anticipation of lower needs. This reduction was temporary, and by 2013 assessments had grown to $963 million, 25% above 2006 levels and almost 90% above 2007 levels. OLIVER WYMAN ACTUARIAL CONSULTING PAGE 4

7 Consequences of the 2007 Legislation 1. The increases to the maximum weekly benefit had a much greater impact on cost than originally anticipated due to increased utilization. The maximum weekly benefit almost doubled over the course of three years (from $400 per week effective June 30, 2007 to $ per week effective July 1, 2010) as mandated by the legislation. The impact on utilization was materially greater than anticipated. The following chart shows that PPD claim frequency increased by ~30% in New York from 2006 through Countrywide 13 PPD claim frequency decreased by ~15% during the same time period. Additionally, overall LT claim frequency in New York remained almost unchanged from 2006 through 2011, while countrywide LT claim frequency decreased by 17% during the same period. The legislation effectively halted the falling LT claim incidence that both New York and the rest of the United States experienced from 2001 through Subsequent to 2006, the incidence of all LT claims in NY has remained relatively constant, while LT claim incidence on a countrywide basis continued to decline. NEW YORK CLAIM FREQUENCY per 100,000 workers COUNTRYWIDE CLAIM FREQUENCY per 100,000 workers Policy Total Permanent PP % Policy Total Permanent PP % Year Lost Time Partial Year Lost Time Partial % , % % , % % , % % , % % , % % , % % % % % % % % % % % Note the material proportional shift in New York to expensive PPD claims. In 2006, 45% of all LT claims in New York were PPD claims. In 2011, this increased to 59%. On a countrywide basis, this proportion has been relatively constant since 2006, ranging between 37% and 41%. The shift to a greater percentage of PPD claims increased WC costs in New York. Additionally, this impact was amplified by material increases to PPD claim costs during this same time period. The following section addresses this latter item. 13 Years are approximate given that the individual states comprising countrywide data utilize data grouped into varying time-periods. OLIVER WYMAN ACTUARIAL CONSULTING PAGE 5

8 2. The cost of PPD claims, rather than decreasing subsequent to the law change, increased substantially. Permanent Partial Average Claim Costs Policy Years 2001 through 2011 New York versus Countrywide Medical and Indemnity Benefits Only Policy NY/Countrywide Year New York Countrywide Relativity ,719 71, ,505 68, ,666 70, ,142 67, ,457 69, ,395 71, ,061 75, ,992 76, ,506 76, ,718 76, ,352 77, The chart above compares PPD claim costs in NY to countrywide data, and shows that on a countrywide basis, PPD claim costs increased marginally from 2001 to In New York, PPD claim costs increased materially from 2001 to However, rather than decreasing, or stabilizing, after the 2007 legislation, PPD claim costs continued to increase. One reason for this increase is, obviously, the increase to the maximum weekly benefit. Weekly benefit payments, rather than being capped at $400 per week, are capped at over $800 per week, resulting in a large increase to the cost of permanent partial disability awards. However, another material causative factor is the greater willingness of claimants to extend the period of total disability prior to assignment of an impairment rating. This period is often referred to as the healing period. According to the New York Workers Compensation Board, the average time to disability rating in New York has increased from 4.8 years (prior to the 2007 law change) to 6.4 years (based on data measured last year). This adds, prior to consideration of any other associated cost, $50,000 to the cost of a claim (assuming a benefit of $600 per week on temporary total disability). Responsibility for this increase lies with both claimants, through their legal representation, as well as insurance carriers. As respects claimants, time on disability does not contribute towards duration caps until an impairment rating is issued. Given that the maximum weekly benefit has more than doubled due to the 2007 law changes, it is now economically feasible for some claimants to remain on total disability for an extended period. Insurance carriers contribute to this problem by delaying impairment ratings. On the surface, this behavior does not appear to be rational given that these delays materially increase the cost of claims. However, insurance carriers may be acting to delay impairment ratings to avoid the required large cash deposit into the OLIVER WYMAN ACTUARIAL CONSULTING PAGE 6

9 ATF if a claim is not settled within six months of establishing the rating. This latter issue emerged because of the expansion of the ATF to include PPD claims, which gives claimant attorneys greater leverage in settlement negotiations, by using the threat of a mandatory deposit into the ATF to secure larger settlements than otherwise might have been obtained. On the other hand, it should be noted that the ATF also motivates claimants to settle, given that once a deposit into the ATF is made, the ATF generally will act to settle claims at materially lower values than might have been offered by the carrier. Discussions with claims administrators indicate that while the ATF 14 deposit rule pressures both parties, the leverage favors claimants. 3. Medical Treatment Guidelines The Workers Compensation Board implemented initial guidelines in 2010, and implementation continues through today. Conversations with Oliver Wyman clients indicate that the guidelines may favorably impact costs over the longer term. In total, the overall impact of the 2007 legislation has been to materially increase costs primarily because of the resulting higher incidence of PPD claims as well as greater PPD claim costs. There is also a real concern regarding the viability of the 525 week limit on the duration of PPD claims. The law allows for claimants with an 80% or more loss of earnings capacity to apply for hardship lifetime permanent total disability awards. Claims professionals have expressed concerns that a greater proportion of claimants than anticipated by the 2007 law will, near the end of their claim, apply and receive hardship status. If the duration caps put into place by the 2007 legislation prove to be even partially ineffective, then costs may increase materially over current high levels. 14 The ATF rule applies only to employers insured by private carriers. It does NOT apply to self-insured employers nor does it apply to employers insured by the State Insurance Fund. Conversations with Oliver Wyman clients that are insured with large deductible insurance policies indicate that the ATF is a cost driver. However, both selfinsured and insured clients of Oliver Wyman have experienced similar material cost increases since the 2007 legislation. Therefore, while the expansion of the ATF to include PPD claims has likely contributed to cost increases, it is not clear whether this contribution is material in the context of other issues, such as delays to impairment ratings originating from claimants and overall system utilization. OLIVER WYMAN ACTUARIAL CONSULTING PAGE 7

10 Assessments There are five programs funded by assessments: 15-8 Special Disability Fund 25-A Reopened Case Fund 50-5 Self-Insurer Assessment IDP Interdepartmental Expenses 151 Workers Compensation Board Administration Descriptions of each assessment follow: IDP and 151 IDP and 151, provide for administration costs of the Workers Compensation Board and other occupational health and safety programs in New York. The combined collected assessments increased from $212 million in 2007 to $245 million in This translates into a reasonable annual increase of approximately 2.5% Special Disability Fund The assessment for the Special Disability Fund (closed to claims with dates of loss on or after July 1, 2007 by the 2007 legislation) increased marginally from levels in 2006 to $648 million in Required funding is expected to remain near this level in the immediate future, and then decrease over time until all claims in the fund close. This will occur over a 40+ year time horizon. 25-A Reopened Case Fund A material issue emerged with the Reopened Case Fund assessments totaled $314 million, roughly double the assessments in The increase in assessments reflected much greater utilization of the fund, perhaps spurred by the closure of the Special Disability Fund. Additionally, there was a material concern that an unintended consequence of the 2007 legislation would materially increase the potential pool of claims 16 that could be placed into 25- A. Because of this issue, as well as the large increase in assessments, the Reopened Case Fund was closed to new claims effective December 31, Required funding is expected to remain at or above the 2013 level for the immediate future, and then decrease over time until all claims in the Reopened Case Fund close. As with the Special Disability Fund, this is expected to occur over a 40+ year time horizon. 15 Total assessments in 2006 were approximately $164 million (estimated based on Workers Compensation Board data), dropping to $96 million in The reduction was temporary, and assessments grew to $314 million in 2013, almost twice 2006 levels and three times 2007 levels. 16 Prior to the 2007 legislation, non-scheduled PPD claims often resulted in lifetime disability awards with weekly benefit payments. These claims could not be placed into the Reopened Case Fund, which requires that a minimum of three years pass from the last wage-replacement payment, and that a minimum of seven years pass from the date of loss, before a claim could be considered for entry into the fund. Elimination of lifetime disability awards for all but the most serious of PPD claims effectively created a very large pool of claims that potentially would meet the requirements for entry into the fund for the purpose of funding injury related medical benefits. Medical benefits are provided as long as required, regardless as to whether wage-replacement benefits have expired or have been terminated due to an indemnity only settlement. OLIVER WYMAN ACTUARIAL CONSULTING PAGE 8

11 50-5 Self-Insurers This assessment provides for administration of the self-insurance market in New York and funding of benefit payments due to claims insured by insolvent self-insured employers and group trusts 17. Cash revenue required to fund 50-5 increased from $8.4 million in 2006 to over $27 million in A much smaller number of employers fund the larger cash requirement because of the closure of most group trusts since The impact is a materially greater cash burden on remaining self-insured employers. Legislation enacted in 2013, in addition to closing the Reopened Case Fund 18, simplified the extraordinarily complex manner by which assessments were levied. The legislation created a single unified assessment for 15-8, 25-A, 151, and IDP. Additionally, the legislation created a single assessment base for all employers, and relieved self-insured employers of the need to maintain a balance sheet accrual for future assessment payments 19. In 2014, the assessment percentage was 13.8% of standard premium for insured employers, or 13.8% of the standard premium equivalent 20 for self-insured employers. The 13.8% charge funds only 15-8, IDP, and 151. The Workers Compensation Board recently announced that that the assessment rate for 2015 is 13.2%. The 2014 and 2015 assessment rates do not include a provision for 25-A. Current 25-A expenditures are being funding by cash reserves. Within the next two years, additional assessment funding for 25-A will likely be required. However, the state is actively exploring approaches to mitigate the impact of future assessment needs. 17 In the mid-2000s, there were approximately 70 active self-insured groups. As of August 1, 2014, 3 are active, 34 are closed and in run-off, 23 are insolvent, with matters of other groups (either in run-off or insolvent) resolved by the Workers Compensation Board. Insolvency, in the context of the New York Workers Compensation Board, means there are no longer assets to fund benefit payments. Therefore, as time passes, it is likely that additional groups, currently in run-off, will exhaust their remaining assets and become insolvent. 18 The 2013 legislation also increased the minimum weekly benefit from $100 to $150 per week. 19 Prior to the 2013 legislation, insured employers paid an annual assessment based on their premium charge. The insurer collected the assessment charge and then paid the state. Self-insured employers, however, paid an assessment charge based on prior year indemnity payments. This meant that a self-insurer, even if it closed the self-insurance program, would still be obligated to pay assessments until all claims in the program closed. Therefore, self-insured employers had to maintain a balance sheet accrual for future assessments associated with future indemnity payments on prior claims. The 2013 legislation changed the assessment base for self-insured employers from indemnity payments to a standard premium equivalent, eliminating the need for a balance sheet accrual. The state now assesses self-insured employers in the same manner as insured employers for the 15-8, 15-A, IDP, and 151 assessments. However, the 50-5 assessment for self-insurers still uses indemnity payments as an assessment base. Therefore, a balance sheet accrual is still required for this single assessment. 20 The standard premium equivalent is equal to payroll (in units of $100) by employee classification multiplied by the appropriate manual loss cost published by the New York Compensation Insurance Rating Bureau. The justification for this approach is loss costs understate standard premium because loss costs do not include insurance company expenses and profit that are included in premium rates used by insurance carriers. On the other hand, the calculation does not give self-insured employers the benefit of the experience modification factor, which would act to reduce standard premium given that self-insured employers generally have better than average loss experience. OLIVER WYMAN ACTUARIAL CONSULTING PAGE 9

12 Closing Comments The following graph displays the components of LT claim costs in New York from 2001 through Values subsequent to 2011 are forecasts given that insurance industry data is currently available only through The assessment components include provisions only for the Special Disability Fund (15-8) and the Reopened Case Fund (25-A), as these represent the cost of claims that have been shifted from insurers or self-insured employers to the respective funds. Note that assessment charges in 2014 and 2015 provide only for the Special Disability Fund because the 13.8% unified assessment percentage does not include a provision for the Reopened Case Fund. The expectation is that funding for the Reopened Case Fund will be included in 2016 and subsequent years. The graph shows that the expected cost of all components of a LT claim in New York is in excess of $120,000 in OLIVER WYMAN ACTUARIAL CONSULTING PAGE 10

13 The following chart displays expectations regarding LT claim frequency in New York as well as the PPD percentage. Values subsequent to 2011 are forecasts based on recent data from Oliver Wyman clients. LT claim frequency is expected to remain stable, but the PPD percentage is expected to continue to increase until it stabilizes in NEW YORK CLAIM FREQUENCY per 100,000 workers Policy Total Permanent PP % Year Lost Time Partial , % , % , % , % % % % % % % % % % % % The preceding chart and graph show that WC costs in New York will continue to increase. As noted earlier, a material concern is the viability of the 525 week duration cap on PPD claims. If this cap proves to be even partially ineffective, the estimates of claim costs presented earlier will likely be understated, possibly materially, resulting in cost levels higher than presented in this paper. It is clear from data that has emerged since 2007 that the 2007 legislation, rather than decreasing WC costs in New York, greatly increased costs. Additionally, the cost of assessments to fund the claims in the Special Disability Fund and the Reopened Case Fund has grown from $516 million in 2007 to $963 million in In the shorter term, required funding is expected to remain at the 2013 level. Over the longer term, required funding will decline as claims in these funds close. This run-off will last in excess of 40 years. OLIVER WYMAN ACTUARIAL CONSULTING PAGE 11

14 For additional information on the contents of this article, contact Oliver Wyman Actuarial Consulting, Inc. Scott J. Lefkowitz, FCAS, MAAA, FCA Oliver Wyman Actuarial Consulting, Inc. 48 South Service Road Suite 310 Melville, NY The information contained herein is based on sources believed to be reliable, but Oliver Wyman does not guarantee the accuracy of its sources. It is general risk management and insurance information only. Oliver Wyman makes no representations or warranties, expressed or implied, concerning the financial condition, solvency, or application of policy wordings of insurers or reinsurers. The information contained in this publication provides only a general overview of subjects covered, is not advice regarding any individual situation, and should not be relied upon as such. Statements concerning tax, and/or legal matters are general observations based solely on our experience as risk consultants and should not be relied upon as tax and/or legal advice, which we are not authorized to provide. Readers of this document should consult their own qualified insurance, risk management, tax, and/or legal advisors regarding any specific issue discussed in this document. This document or any portion of the information it contains may not be copied or reproduced in any form without the permission of Oliver Wyman, except that clients of any of the companies of Marsh and McLennan Companies need not obtain such permission when using this report for their internal purposes, as long as this report is reproduced in its entirely, and this page is included with all copies and reproductions. OLIVER WYMAN ACTUARIAL CONSULTING PAGE 12

15 Consulting Actuaries Oliver Wyman Actuarial Consulting, Inc. is a practice of Oliver Wyman that specializes in property, casualty, life and health risk exposures. We provide independent, objective advice combining a wide range of expertise with specialized knowledge of the unique risk exposures of our clients. With almost 100 credentialed actuaries, we are one of the largest actuarial practices in North America. Oliver Wyman currently has actuarial consulting offices in Atlanta, Charlotte (NC), Chicago, Columbus (OH), Hartford, Houston, Los Angeles, Melville (NY), Milwaukee, Nashville, New York City, Philadelphia, Princeton, San Francisco, St. Michael (Barbados), and Toronto. Oliver Wyman Actuarial Consulting, Inc. 48 South Service Road Suite 310 Melville, NY

16 Consulting Actuaries Oliver Wyman Actuarial Consulting, Inc. 48 South Service Road Suite 310 Melville, NY

WORKERS COMPENSATION CLAIM COSTS AND TRENDS IN NEW JERSEY

WORKERS COMPENSATION CLAIM COSTS AND TRENDS IN NEW JERSEY Consulting Actuaries WORKERS COMPENSATION CLAIM COSTS AND TRENDS IN NEW JERSEY Scott J. Lefkowitz, FCAS, MAAA, FCA October 2015 CONTENTS Introduction... 1 Claim Frequency... 3 Introduction... 3 Frequency

More information

WORKERS COMPENSATION CLAIM COSTS AND TRENDS IN CONNECTICUT

WORKERS COMPENSATION CLAIM COSTS AND TRENDS IN CONNECTICUT Consulting Actuaries WORKERS COMPENSATION CLAIM COSTS AND TRENDS IN CONNECTICUT Scott J. Lefkowitz, FCAS, MAAA, FCA October 2015 CONTENTS Introduction... 1 Claim Frequency... 3 Introduction... 3 Frequency

More information

Understanding Workers Compensation in New York

Understanding Workers Compensation in New York Understanding Workers Compensation in New York September 2014 Scott J Lefkowitz FCAS, MAAA, FCA Steven G McKinnon FCAS, MAAA, FCA About Us Oliver Wyman Actuarial Consulting Office in Melville, NY 25+ Clients

More information

NEW YORK STATE WORKERS COMPENSATION BOARD ASSESSMENTS

NEW YORK STATE WORKERS COMPENSATION BOARD ASSESSMENTS Consulting Actuaries NEW YORK STATE WORKERS COMPENSATION BOARD ASSESSMENTS A DISCUSSION OF ASSESSMENTS AND RECENT INCREASES IMPACTING EMPLOYERS APRIL 2013 AUTHORS Scott J. Lefkowitz, FCAS, MAAA, FCA Steven

More information

Examining Costs and Trends of Workers Compensation Claims

Examining Costs and Trends of Workers Compensation Claims Consulting Actuaries Examining Costs and Trends of Workers Compensation Claims in Connecticut Authors Scott J. Lefkowitz, FCAS, MAAA, FCA Eric. J. Hornick, FCAS, MAAA, FCA Contents 1. Introduction 1 2.

More information

Understanding Workers Compensation in New York

Understanding Workers Compensation in New York Understanding Workers Compensation in New York May 2015 Scott J Lefkowitz FCAS, MAAA, FCA About Me Oliver Wyman Actuarial Consulting Office in Melville, NY FCAS, MAAA, FCA with 27 Years in Actuarial Field

More information

Florida Workers Compensation and Attorney Fees April 28, 2016 April 28, 2016 Florida Supreme Court Ruling. Introduction... 1

Florida Workers Compensation and Attorney Fees April 28, 2016 April 28, 2016 Florida Supreme Court Ruling. Introduction... 1 Consulting Actuaries Implications of the April 28, 2016 Florida Supreme Court Ruling on the Unconstitutionality of Florida s Workers Compensation Attorney Fee Schedule Jennifer K. Price, FCAS, MAAA Scott

More information

EXAMINING COSTS AND TRENDS OF WORKERS COMPENSATION CLAIMS IN MASSACHUSETTS

EXAMINING COSTS AND TRENDS OF WORKERS COMPENSATION CLAIMS IN MASSACHUSETTS Consulting Actuaries EXAMINING COSTS AND TRENDS OF WORKERS COMPENSATION CLAIMS IN MASSACHUSETTS AUTHORS Scott J. Lefkowitz, FCAS, MAAA, FCA Steven G. McKinnon, FCAS, MAAA CONTENTS 1. INTRODUCTION 1 2.

More information

EXAMINING COSTS AND TRENDS OF WORKERS COMPENSATION CLAIMS IN NEW YORK STATE

EXAMINING COSTS AND TRENDS OF WORKERS COMPENSATION CLAIMS IN NEW YORK STATE Consulting Actuaries EXAMINING COSTS AND TRENDS OF WORKERS COMPENSATION CLAIMS IN NEW YORK STATE MARCH 2013 AUTHORS Scott J. Lefkowitz, FCAS, MAAA, FCA Steven G. McKinnon, FCAS, MAAA, FCA Eric J. Hornick,

More information

Examining Costs and Trends of Workers Compensation Claims in New York State

Examining Costs and Trends of Workers Compensation Claims in New York State Consulting Actuaries Examining Costs and Trends of Workers Compensation Claims in New York State Authors Scott J. Lefkowitz, FCAS, MAAA, FCA Steven G. McKinnon, FCAS, MAAA Contents 1. Introduction 1 2.

More information

CALIFORNIA WORKERS COMPENSATION SB 863: HOW IS IT MEASURING UP?

CALIFORNIA WORKERS COMPENSATION SB 863: HOW IS IT MEASURING UP? Actuarial Consulting JUNE 2015 CALIFORNIA WORKERS COMPENSATION SB 863: HOW IS IT MEASURING UP? AUTHOR Esther Becker, ACAS, MAAA Principal Jillian Hagan, FCAS, MAAA Senior Consultant In September California

More information

New York Workers Compensation Trends

New York Workers Compensation Trends New York Workers Compensation Trends June 2015 Oliver Wyman QUALIFICATIONS, ASSUMPTIONS AND LIMITING CONDITIONS This report is for the exclusive use of the Oliver Wyman client named herein. This report

More information

New York Workers Compensation Reform Act 2007 Update October 2007

New York Workers Compensation Reform Act 2007 Update October 2007 Casualty New York Workers Compensation Reform Act 2007 Update October 2007 The New York Workers Compensation Reform Act was signed into law on March 13, and Governor Spitzer s first press release indicated

More information

WCIRB REPORT ON THE STATE OF THE CALIFORNIA WORKERS COMPENSATION INSURANCE SYSTEM

WCIRB REPORT ON THE STATE OF THE CALIFORNIA WORKERS COMPENSATION INSURANCE SYSTEM STATE OF THE SYSTEM WCIRB REPORT ON THE STATE OF THE CALIFORNIA WORKERS COMPENSATION INSURANCE SYSTEM Introduction The workers compensation insurance system in California is over 100 years old. It provides

More information

ANALYSIS OF PROPOSED BILLS TO REFORM THE WORKERS COMPENSATION SYSTEM

ANALYSIS OF PROPOSED BILLS TO REFORM THE WORKERS COMPENSATION SYSTEM ANALYSIS OF PROPOSED BILLS TO REFORM THE WORKERS COMPENSATION SYSTEM Part O of Senate Bill 2605 / Assembly 3005, which is part of the proposed budget bill introduced by Governor Cuomo proposes to reform

More information

Minnesota Workers' Compensation. System Report, 2012. minnesota department of. labor & industry. research and statistics

Minnesota Workers' Compensation. System Report, 2012. minnesota department of. labor & industry. research and statistics Minnesota Workers' Compensation System Report, 2012 minnesota department of labor & industry research and statistics Minnesota Workers Compensation System Report, 2012 by David Berry (principal) Brian

More information

CHAPTER 1. Wyoming Workers Compensation. Workers Compensation Programs Benefit Injured Workers and Employers

CHAPTER 1. Wyoming Workers Compensation. Workers Compensation Programs Benefit Injured Workers and Employers CHAPTER 1 Wyoming Workers Compensation Workers Compensation Programs Benefit Injured Workers and Employers Injured workers receive medical and lost wage benefits, regardless of fault. Employers receive

More information

Worker's Compensation Insurance in Wisconsin THE SYSTEM, THE BENEFITS, THE COSTS A REFERENCE GUIDE FOR EMPLOYERS

Worker's Compensation Insurance in Wisconsin THE SYSTEM, THE BENEFITS, THE COSTS A REFERENCE GUIDE FOR EMPLOYERS Worker's Compensation Insurance in Wisconsin THE SYSTEM, THE BENEFITS, THE COSTS A REFERENCE GUIDE FOR EMPLOYERS This guide is intended to provide a general, non-technical explanation to help employers

More information

NEW JERSEY COMPENSATION RATING & INSPECTION BUREAU EXPLORING THE COST OF A WORKERS COMPENSATION INSURANCE POLICY

NEW JERSEY COMPENSATION RATING & INSPECTION BUREAU EXPLORING THE COST OF A WORKERS COMPENSATION INSURANCE POLICY NEW JERSEY COMPENSATION RATING & INSPECTION BUREAU EXPLORING THE COST OF A WORKERS COMPENSATION INSURANCE POLICY 2007 INTRODUCTION This booklet provides a basic explanation of how the cost of a New Jersey

More information

Reserving Issues for Workers Compensation Managed Care by Susan E. Witcraft, FCAS

Reserving Issues for Workers Compensation Managed Care by Susan E. Witcraft, FCAS Reserving Issues for Workers Compensation Managed Care by Susan E. Witcraft, FCAS 273 Reserving Issues for Workers Compensation Managed Care by Susan E. Witcraft Abstract Managed care is becoming an integral

More information

Workers Compensation Assessments 2012: New York remains the highest in the nation.

Workers Compensation Assessments 2012: New York remains the highest in the nation. Workers Compensation Assessments 2012: New York remains the highest in the nation. By Paul Jahn, Debbie Stickle and Kristen Morris Executive Summary An assessment surcharge added to workers' compensation

More information

Minnesota Workers' Compensation. System Report, 2006. minnesota department of. labor & industry. Policy Development, Research and Statistics

Minnesota Workers' Compensation. System Report, 2006. minnesota department of. labor & industry. Policy Development, Research and Statistics Minnesota Workers' Compensation System Report, 2006 minnesota department of labor & industry Policy Development, Research and Statistics Minnesota Workers Compensation System Report, 2006 by David Berry

More information

2016 ASSESSMENT RATES

2016 ASSESSMENT RATES 2016 ASSESSMENT RATES FOREWORD WorkSafeNB determines employers assessment rates annually. Several factors influence rates, such as WorkSafeNB s current financial obligations, the prevailing economic environment,

More information

HEADWINDS FOR CALIFORNIA WORKERS COMPENSATION: TAKING THE HELM

HEADWINDS FOR CALIFORNIA WORKERS COMPENSATION: TAKING THE HELM HEADWINDS FOR CALIFORNIA WORKERS COMPENSATION: TAKING THE HELM February 2012 Colleen Britz Managing Director Tom Cammann Managing Director Jay Wesley Managing Director Los Angeles, CA Headwinds for California

More information

WCIRB Report on June 30, 2014 Insurer Experience Released: September 11, 2014

WCIRB Report on June 30, 2014 Insurer Experience Released: September 11, 2014 Workers Compensation Insurance Rating Bureau of California WCIRB Report on June 3, 214 Insurer Experience Released: September 11, 214 WCIRB California 525 Market Street, Suite 8 San Francisco, CA 9415-2767

More information

WORKERS COMPENSATION RATEMAKING PROCESSES OF THE NATIONAL COUNCIL ON COMPENSATION INSURANCE, INC.

WORKERS COMPENSATION RATEMAKING PROCESSES OF THE NATIONAL COUNCIL ON COMPENSATION INSURANCE, INC. WORKERS COMPENSATION RATEMAKING PROCESSES OF THE NATIONAL COUNCIL ON COMPENSATION INSURANCE, INC. JANUARY 2014 CONTENTS 1. Introduction... 1 Scope... 1 Overview of the NCCI Ratemaking Methodology... 2

More information

The California Workers Compensation System A WCIRB Perspective

The California Workers Compensation System A WCIRB Perspective W o r k e r s C o m p e n s a t i o n I n s u r a n c e R a t i n g B u r e a u o f C a l i f o r n i a The California Workers Compensation System A WCIRB Perspective Dave Bellusci EVP, COO and Chief Actuary

More information

Summary of Tennessee Voluntary Loss Cost Filings

Summary of Tennessee Voluntary Loss Cost Filings Summary of Tennessee Voluntary Loss Cost Filings Experience Filing, Proposed Effective March 1, 2014 Law-Only Filing, Proposed Effective July 1, 2014 NCCI Presentation to Advisory Council on Workers Compensation

More information

Corporate Consulting Services, Ltd. Workers Compensation in Today s Environment

Corporate Consulting Services, Ltd. Workers Compensation in Today s Environment Corporate Consulting Services, Ltd. Workers Compensation in Today s Environment 2014 Corporate 2014 Corporate Consulting Consulting Services, Services, Ltd. Ltd. Forces Impacting Workers Compensation Today

More information

The 2004 Report of the Social Security Trustees: Social Security Shortfalls, Social Security Reform and Higher Education

The 2004 Report of the Social Security Trustees: Social Security Shortfalls, Social Security Reform and Higher Education POLICY BRIEF Visit us at: www.tiaa-crefinstitute.org. September 2004 The 2004 Report of the Social Security Trustees: Social Security Shortfalls, Social Security Reform and Higher Education The 2004 Social

More information

Missouri Business Taxes

Missouri Business Taxes Missouri Business Taxes Missouri Taxes During the last three decades, one key factor in keeping the cost of doing business in Missouri low has been our ability to ensure that our state and local tax burden

More information

2015 ASSESSMENT RATES

2015 ASSESSMENT RATES 2015 ASSESSMENT RATES FOREWORD WorkSafeNB determines employers assessment rates annually. Several factors influence rates, such as WorkSafeNB s current financial obligations, the prevailing economic environment,

More information

Florida Workers Compensation: A Guide for the HR Professional

Florida Workers Compensation: A Guide for the HR Professional Florida Workers Compensation: A Guide for the HR Professional Jennifer K. Price, FCAS, MAAA Session Objectives Workers Compensation Basics Florida Reforms, Cost Trends, and Challenges The Patient Protection

More information

Workers Compensation and the Aging Workforce

Workers Compensation and the Aging Workforce December 2011 by Tanya Restrepo and Harry Shuford Workers Compensation and the Aging Workforce There is widespread concern about the potential adverse impact on workers compensation loss costs as the baby

More information

VERMONT DEPARTMENT OF BANKING, INSURANCE, SECURITIES, AND HEALTH CARE ADMINISTRATION

VERMONT DEPARTMENT OF BANKING, INSURANCE, SECURITIES, AND HEALTH CARE ADMINISTRATION VERMONT DEPARTMENT OF BANKING, INSURANCE, SECURITIES, AND HEALTH CARE ADMINISTRATION TECHNIQUES TO STABILIZE VERMONT WORKERS COMPENSATION PREMIUM COSTS AND MINIMIZE THE IMPACT OF LARGE CLAIMS Prepared

More information

Minnesota Workers' Compensation. System Report, 2011. minnesota department of. labor & industry. research and statistics

Minnesota Workers' Compensation. System Report, 2011. minnesota department of. labor & industry. research and statistics Minnesota Workers' Compensation System Report, 2011 minnesota department of labor & industry research and statistics Minnesota Workers Compensation System Report, 2011 by David Berry (principal) Brian

More information

2012 Workers Compensation Data Call Summary Insurance Oversight Part A

2012 Workers Compensation Data Call Summary Insurance Oversight Part A 2012 Workers Compensation Data Call Summary Insurance Oversight Part A INTRODUCTION: Revisions to the Illinois Workers Compensation Act (820 ILCS 305/29) in the fall of 2011 required the Department of

More information

WCB-Alberta. 2014 Premium Rates

WCB-Alberta. 2014 Premium Rates WCB-Alberta 2014 Premium Rates Foreword The Alberta Workers Compensation Board sets premium rates annually for each industry. This guide is meant to provide a basic understanding of the process for setting

More information

Analysis of Changes in Indemnity Claim Frequency January 2015 Update Report Released: January 14, 2015

Analysis of Changes in Indemnity Claim Frequency January 2015 Update Report Released: January 14, 2015 Workers Compensation Insurance Rating Bureau of California Analysis of Changes in Indemnity Claim Frequency January 2015 Update Report Released: January 14, 2015 Notice This Analysis of Changes in Indemnity

More information

WCIRB Workers Compensation Conference. California Workers Compensation System in 2012 A WCIRB Perspective Dave Bellusci, WCIRB Chief Actuary

WCIRB Workers Compensation Conference. California Workers Compensation System in 2012 A WCIRB Perspective Dave Bellusci, WCIRB Chief Actuary 6/19/212 W o r k e r s C o m p e n s a t i o n I n s u r a n c e R a t i n g B u r e a u o f C a l i f o r n i a WCIRB Workers Compensation Conference Silverado Resort Napa, California June 14, 212 California

More information

February 11, 2005. Review of Alberta Automobile Insurance Experience. as of June 30, 2004

February 11, 2005. Review of Alberta Automobile Insurance Experience. as of June 30, 2004 February 11, 2005 Review of Alberta Automobile Insurance Experience as of June 30, 2004 Contents 1. Introduction and Executive Summary...1 Data and Reliances...2 Limitations...3 2. Summary of Findings...4

More information

Guidelines for Agents & Brokers

Guidelines for Agents & Brokers IIABNY, Inc. 5784 Widewaters Parkway, 1st Floor, Dewitt, NY 13214 Tel 800-962-7950 Fax 888-432-0510 www.iiabny.org NEW YORK WORKER S COMPENSATION SELF INSURED TRUSTS Guidelines for Agents & Brokers TABLE

More information

Workers Compensation Claim State Environmental Guide - Tennessee

Workers Compensation Claim State Environmental Guide - Tennessee Workers Compensation Claim State Environmental Guide - Tennessee TENNESSEE http://www.state.tn.us/labor-wfd/wcomp.html Indemnity issues Temporary Total Benefits Temporary Partial Benefits Permanent Partial

More information

California Workers Compensation. Where Do We Go Now?

California Workers Compensation. Where Do We Go Now? California Workers Compensation [1] Where Do We Go Now? Presented by: Dave Bellusci, FCAS, MAAA WCIRB of California 2010 CAS Spring Meeting San Diego, California May 23-26, 2010 Agenda 2002 through 2004

More information

WORKERS COMPENSATION GLOSSARY

WORKERS COMPENSATION GLOSSARY WORKERS COMPENSATION GLOSSARY ACCIDENT An unplanned and unexpected event which occurs suddenly and at a definite place resulting in injury and/or damage. ACCIDENT FREQUENCY The rate of the occurrence of

More information

Workers' Compensation

Workers' Compensation Workers' Compensation Workers compensation provides benefits to injured employees for accidents or occupational diseases arising out of, and in the course of, their employment. Compensation coverage is

More information

RE: Disclosure Requirements for Short Duration Insurance Contracts

RE: Disclosure Requirements for Short Duration Insurance Contracts INS-14 November 21, 2014 Mr. Russell G. Golden Chairman Financial Accounting Standards Board 401 Merritt 7 P.O. Box 5116 Norwalk, Connecticut 06856-5116 RE: Disclosure Requirements for Short Duration Insurance

More information

Comments on exposure draft of ISAP nn Valuation of Social Security Programs

Comments on exposure draft of ISAP nn Valuation of Social Security Programs February 26, 2013 To: Dave Pelletier, Chair, IAA Actuarial Standards Committee Rob Brown, Chair, IAA Social Security Task Force Godfrey Perrot, IAA Social Security Task Force Liaison to Actuarial Standards

More information

State of Connecticut Insurance Department

State of Connecticut Insurance Department State of Connecticut Insurance Department Commissioner Katharine L. Wade P.O. Box 816 153 Market Street Hartford, CT 06142-0816 (860) 297-3801 www.ct.gov/cid Connecticut Medical Malpractice Annual Report

More information

A.M. Best - Congressional Testimony Committee on Financial Services America s Insurance Industry: Keeping the Promise

A.M. Best - Congressional Testimony Committee on Financial Services America s Insurance Industry: Keeping the Promise A.M. Best - Congressional Testimony Committee on Financial Services America s Insurance Industry: Keeping the Promise The horrible events of September 11 th caused shocks throughout the world s financial

More information

Hawai i s Workers Compensation System; Coverage, Benefits, Costs: 1994-2004

Hawai i s Workers Compensation System; Coverage, Benefits, Costs: 1994-2004 Hawai i s Workers Compensation System; Coverage, Benefits, Costs: 1994-2004 Lawrence W. Boyd Ph. D. University of Hawaii-West Oahu Center for Labor Education and Research January 12, 2006 1 Introduction

More information

Coordination of Worker s Compensation Benefits

Coordination of Worker s Compensation Benefits Coordination of Worker s Compensation Benefits Richard Swanson MACEY SWANSON AND ALLMAN June 9, 2011 Temporary Total Disability (TTD) These are weekly benefits paid to an employee when the employee is:

More information

Marsh Private Client Life Insurance Services 10 REASONS TO REVIEW YOUR LIFE INSURANCE TODAY

Marsh Private Client Life Insurance Services 10 REASONS TO REVIEW YOUR LIFE INSURANCE TODAY Marsh Private Client Life Insurance Services 10 REASONS TO REVIEW YOUR LIFE INSURANCE TODAY 1. HAVE YOUR NEEDS CHANGED? Is the original reason you purchased your policies still applicable? Often, the need

More information

National Business Group on Health DATA DICTIONARY. Workers Compensation

National Business Group on Health DATA DICTIONARY. Workers Compensation National Business Group on Health DATA DICTIONARY Workers Compensation EMPAQ Workers Compensation (WC) Metrics Metric Calculation Annual Claim Incidence per 100 FTEs Total Number of New WC Indemnity Claims

More information

Sample Exam Questions

Sample Exam Questions Module I of the CHFP Program: HFMA's Business of Health Care course Sample Exam Questions HFMA s Business of Health Care is a comprehensive online program that presents an overview of today s healthcare

More information

State Disability Insurance Laws

State Disability Insurance Laws State Disability Insurance Laws State disability insurance benefits are also called temporary disability insurance benefits and short-term disability insurance benefits. Currently, only five states provide

More information

VALUATION ACTUARIES AHD PROPERTY-CASUALTY IHSURAHCE. By Susan E. Witcraft

VALUATION ACTUARIES AHD PROPERTY-CASUALTY IHSURAHCE. By Susan E. Witcraft VALUATION ACTUARIES AHD PROPERTY-CASUALTY IHSURAHCE By Susan E. Witcraft BIOGRAPHY: Ms. Wttcraft is an Associate Member with Nilliman & Robertson, Inc., Consultants and Actuaries, in their Minneapolis

More information

THE CONSUMERS SAFETY NET

THE CONSUMERS SAFETY NET INSURANCE GUARANTY ASSOCIATIONS IN CONNECTICUT THE CONSUMERS SAFETY NET Note: It is a prohibited unfair trade practice and a violation of state law for any person to make use in any manner of the existence,

More information

State of Connecticut Insurance Department

State of Connecticut Insurance Department State of Connecticut Insurance Department Commissioner Thomas B. Leonardi P.O. Box 816 153 Market Street Hartford, CT 06142-0816 (860) 297-3801 www.ct.gov/cid Connecticut Medical Malpractice Annual Report

More information

State of Connecticut Insurance Department

State of Connecticut Insurance Department State of Connecticut Insurance Department Commissioner Thomas R. Sullivan P.O. Box 816 153 Market Street Hartford, CT 06142-0816 (860) 297-3801 www.ct.gov/cid Connecticut Medical Malpractice Annual Report

More information

State of Connecticut Insurance Department

State of Connecticut Insurance Department State of Connecticut Insurance Department Commissioner Thomas B. Leonardi P.O. Box 816 153 Market Street Hartford, CT 06142-0816 (860) 297-3801 www.ct.gov/cid Connecticut Medical Malpractice Annual Report

More information

Casualty Actuarial Society

Casualty Actuarial Society Antitrust Notice The Casualty Actuarial Society is committed to adhering strictly to the letter and spirit of the antitrust laws. Seminars conducted under the auspices of the CAS are designed solely to

More information

Minnesota Workers' Compensation. System Report, 2010. minnesota department of. labor & industry. research and statistics

Minnesota Workers' Compensation. System Report, 2010. minnesota department of. labor & industry. research and statistics Minnesota Workers' Compensation System Report, 2010 minnesota department of labor & industry research and statistics Minnesota Workers Compensation System Report, 2010 by David Berry (principal) Brian

More information

The Employers Guide to. Pennsylvania s Workers Compensation Law

The Employers Guide to. Pennsylvania s Workers Compensation Law The Employers Guide to Pennsylvania s Workers Compensation Law Table of Contents About this Guide. 3 The Pennsylvania Workers Compensation Act: An Overview for the Pennsylvania Employer....4 Your Duties

More information

Does Texas Need a Workers Compensation System? Bill Peacock Texas Public Policy Foundation

Does Texas Need a Workers Compensation System? Bill Peacock Texas Public Policy Foundation Does Texas Need a Workers Compensation System? Bill Peacock Texas Public Policy Foundation Beginnings of Workers Compensation Liability and Litigation in the 19 th Century The problem of industrial accidents

More information

Analysis of Changes in Indemnity Claim Frequency

Analysis of Changes in Indemnity Claim Frequency WCIRB California Research and Analysis January 7, 2016 Analysis of Changes in Indemnity Claim Frequency January 2016 Update Report Executive Summary Historically, indemnity claim frequency has generally

More information

ECONOMIC ANALYSIS OF CLAIM COSTS

ECONOMIC ANALYSIS OF CLAIM COSTS ECONOMIC ANALYSIS OF CLAIM COSTS Prepared by Associated Economic Consultants Ltd. August 30, 2000 Table of Contents 1. INTRODUCTION...1 FIGURE 1...4 2. DEMOGRAPHIC AND ECONOMIC FACTORS...5 2.1 Population,

More information

High Risk Jurisdiction Severity Trends, Time to Closure & Obstetric Claims Trends

High Risk Jurisdiction Severity Trends, Time to Closure & Obstetric Claims Trends High Risk Jurisdiction Severity Trends, Time to Closure & Obstetric Claims Trends Analysis and Findings Provided by Beazley Group Excerpt taken from: Aon/ASHRM Hospital and Physician Professional Liability

More information

5000 Public Personal Injury Compensation Plans

5000 Public Personal Injury Compensation Plans 5000 Public Personal Injury Compensation Plans Page 5001 Table of Contents 5000 Public Personal Injury Compensation Plans.5001 5100 Scope... 5003 5200 Extension of scope... 5004 5300 General... 5005 5310

More information

Impact of the Health Insurance Annual Fee Tax

Impact of the Health Insurance Annual Fee Tax Impact of the Health Insurance Annual Fee Tax Robert A. Book, Ph.D. February 20, 2014 Executive Summary The Affordable Care Act's "annual fee on health insurance is a unique tax levied on health insurance

More information

Guidelines for Agents & Brokers

Guidelines for Agents & Brokers IIABNY, Inc. 5784 Widewaters Parkway, 1st Floor, Dewitt, NY 13214 Tel 800-962-7950 Fax 888-432-0510 www.iiabny.org NEW YORK WORKER S COMPENSATION SELF INSURED TRUSTS Guidelines for Agents & Brokers Updated

More information

Ms. Jennifer L. Biggs

Ms. Jennifer L. Biggs Testimony of Ms. Jennifer L. Biggs June 4, 2003 Committee on the Judiciary United States Senate Solving the Asbestos Litigation Crisis: S.1125, the Fairness in Asbestos Injury Resolution Act of 2003 June

More information

AN EMPLOYER S GUIDE TO WORKERS COMPENSATION IN NEW JERSEY

AN EMPLOYER S GUIDE TO WORKERS COMPENSATION IN NEW JERSEY AN EMPLOYER S GUIDE TO WORKERS COMPENSATION IN NEW JERSEY I. WHAT IS WORKERS COMPENSATION?... 2 II. WORKERS COMPENSATION BENEFITS... 3 III. INSURANCE REQUIREMENTS... 4 Types of Coverage Definition of Employee

More information

The Relationship Between Accident Report Lag and Claim Cost in Workers Compensation Insurance

The Relationship Between Accident Report Lag and Claim Cost in Workers Compensation Insurance January 2015 By Thomas Sheppard The Relationship Between Accident Report Lag and Claim Cost in Workers Compensation Insurance INTRODUCTION In 2000, a study by The Hartford [1], using its own data, found

More information

ASSEMBLY, No. 1699 STATE OF NEW JERSEY. 214th LEGISLATURE PRE-FILED FOR INTRODUCTION IN THE 2010 SESSION

ASSEMBLY, No. 1699 STATE OF NEW JERSEY. 214th LEGISLATURE PRE-FILED FOR INTRODUCTION IN THE 2010 SESSION ASSEMBLY, No. STATE OF NEW JERSEY th LEGISLATURE PRE-FILED FOR INTRODUCTION IN THE 0 SESSION Sponsored by: Assemblyman JOHN J. BURZICHELLI District (Salem, Cumberland and Gloucester) Co-Sponsored by: Assemblyman

More information

REFERENCE ACTION ANALYST STAFF DIRECTOR or BUDGET/POLICY CHIEF. 1) Insurance & Banking Subcommittee 11 Y, 0 N Reilly Cooper.

REFERENCE ACTION ANALYST STAFF DIRECTOR or BUDGET/POLICY CHIEF. 1) Insurance & Banking Subcommittee 11 Y, 0 N Reilly Cooper. HOUSE OF REPRESENTATIVES STAFF ANALYSIS BILL #: CS/CS/HB 271 Workers' Compensation SPONSOR(S): Regulatory Affairs Committee; Government Operations Appropriations Subcommittee; Cummings and others TIED

More information

NEW MEXICO SELF-INSURERS' FUND WORKERS' COMPENSATION AND EMPLOYERS' LIABILITY PLAN

NEW MEXICO SELF-INSURERS' FUND WORKERS' COMPENSATION AND EMPLOYERS' LIABILITY PLAN NEW MEXICO SELF-INSURERS' FUND WORKERS' COMPENSATION AND EMPLOYERS' LIABILITY PLAN In return for the payment of the premium and subject to all terms of this Policy, we agree with you as follows. GENERAL

More information

Comparative Review of Workers' Compensation Systems in Select Jurisdictions

Comparative Review of Workers' Compensation Systems in Select Jurisdictions of Workers' Compensation Systems in Select Jurisdictions JURISDICTION: WASHINGTON ENVIRONMENT Population Size 5.5 million in 1996. Labor Force 2.8 million in 1996. Demographic and Economic Indicators The

More information

Bracing for change Medical professional liability (MPL) insurance costs at a crossroads

Bracing for change Medical professional liability (MPL) insurance costs at a crossroads February 2011 Bracing for change Medical professional liability (MPL) insurance costs at a crossroads At a glance The effects of the healthcare reform law, changing market conditions, emerging societal

More information

California Workers Compensation Insurance Pure Premium Rates and Claims Cost Benchmark Effective January 1, 2014

California Workers Compensation Insurance Pure Premium Rates and Claims Cost Benchmark Effective January 1, 2014 October 24, 2013 Ms. Christina Carrol, CPCU Attorney California Department of Insurance Legal Division, Government Law Bureau 300 Capitol Mall, 17th Floor Sacramento, CA 95814 RE: California Workers Compensation

More information

The Relationship Between Accident Report Lag and Claim Cost in Workers Compensation Insurance

The Relationship Between Accident Report Lag and Claim Cost in Workers Compensation Insurance The Relationship Between Accident Report Lag and Claim Cost in Workers Compensation Insurance By Thomas Sheppard Actuarial Consultant NCCI In 2000, a study by The Hartford, using its own data, found that

More information

SPECIAL QUESTIONS. August 26, 2014

SPECIAL QUESTIONS. August 26, 2014 August 26, 2014 SPECIAL QUESTIONS Data were collected Aug. 4 7, and 191 Texas business executives responded to the survey. 1. What are your best estimates of the annual percentage change in your firm's

More information

Florida Workers Compensation Insurance Rates Decrease By 5.2% in 2015, Down by More than 57% Since the 2003 Reforms

Florida Workers Compensation Insurance Rates Decrease By 5.2% in 2015, Down by More than 57% Since the 2003 Reforms Florida Workers Compensation Insurance Rates Decrease By 5.2% in 2015, Down by More than 57% Since the 2003 Reforms A. Introduction. Rafael Gonzalez Vice President of Strategic Solutions Helios Tampa,

More information

Sample Solutions SABER RISK SOLUTIONS, LLC 2700 POST OAK BLVD., SUITE 1400 HOUSTON, TEXAS 77056 832-369-7554 WWW.SABERRISKSOLUTIONS.

Sample Solutions SABER RISK SOLUTIONS, LLC 2700 POST OAK BLVD., SUITE 1400 HOUSTON, TEXAS 77056 832-369-7554 WWW.SABERRISKSOLUTIONS. Sample Solutions SABER RISK SOLUTIONS, LLC 2700 POST OAK BLVD., SUITE 1400 HOUSTON, TEXAS 77056 832-369-7554 WWW.SABERRISKSOLUTIONS.COM Empowered Data Services Can you effectively answer the multiple questions

More information

Workers Compensation Program Review FY09-13

Workers Compensation Program Review FY09-13 Charleston Achieving Excellence: Vision 2016 Workers Compensation Program Review FY09-13 Risk Safety and Environmental Management Dana S. Enck, Director December 9, 2013 Objectives of this presentation

More information

Unit Statistical Data Loss and Claim Conditions

Unit Statistical Data Loss and Claim Conditions NCCI S Unit Statistical Data Loss and Claim Conditions January 26 29, 2016 Palm Beach County Convention Center West Palm Beach, FL Unit Statistical Data Loss and Claim Conditions Presented by: Richard

More information

A WCRI FLASHREPORT. Benchmarking Oregon s Permanent Partial Disability Benefits

A WCRI FLASHREPORT. Benchmarking Oregon s Permanent Partial Disability Benefits A WCRI FLASHREPORT Benchmarking s Permanent Partial Disability Benefits Duncan S. Ballantyne (WCRI) Michael Manley (OR Department of Consumer & Business Services) July, 2002 FR-02-01 WCRI FLASHREPORTS

More information

ANNUAL REPORT Per SCR 111 of 2007

ANNUAL REPORT Per SCR 111 of 2007 ANNUAL REPORT Per SCR 111 of 2007 BY LOUISIANA PATIENT S COMPENSATION FUND October 1, 2008 A BRIEF HISTORY OF THE LOUISIANA PATIENT S COMPENSATION FUND In the early 1970 s, a problem of crisis proportions

More information

Risk Management Division Municipal Manager Anchorage: Performance. Value. Results.

Risk Management Division Municipal Manager Anchorage: Performance. Value. Results. Risk Management Division Anchorage: Performance. Value. Results. Purpose Minimize the financial impact and loss of Human resources, from known and unknown events and accidents. Core Services Process auto

More information

Workers Compensation in California and in the Nation: Benefit and Employer Cost Trends, 1989 2005

Workers Compensation in California and in the Nation: Benefit and Employer Cost Trends, 1989 2005 Workers Compensation Brief April April 2008 2008 No. No. 9 9 Workers Compensation in California and in the Nation: Benefit and Employer Cost Trends, 1989 2005 By Ishita Sengupta, Virginia Reno, Christine

More information

PUBLIC ENTITY RISK MANAGEMENT AUTHORITY MEMORANDUM OF WORKERS COMPENSATION AND EMPLOYERS LIABILITY COVERAGE

PUBLIC ENTITY RISK MANAGEMENT AUTHORITY MEMORANDUM OF WORKERS COMPENSATION AND EMPLOYERS LIABILITY COVERAGE PUBLIC ENTITY RISK MANAGEMENT AUTHORITY MEMORANDUM OF WORKERS COMPENSATION AND EMPLOYERS LIABILITY COVERAGE FOR THE PERIOD JULY 1, 2015 TO JUNE 30, 2016 EFFECTIVE: JULY 1, 2015 PUBLIC ENTITY RISK MANAGEMENT

More information

Mr Rob Hinrichs, Workplace Safety and Insurance Board, Ontario, Canada. (Sir William Meredith)

Mr Rob Hinrichs, Workplace Safety and Insurance Board, Ontario, Canada. (Sir William Meredith) Mr Rob Hinrichs, Workplace Safety and Insurance Board, Ontario, Canada (Sir William Meredith) (Association of Workers Compensation)(AWCBC)!"#$%&'()!"#$%&'()!"#$% !"#$%! (The Canadian Institute of Actuaries)(CIA)

More information

Social Security Social Website

Social Security Social Website 9126113 SSA- POMS: 0152120.080 Illinois Workers' Compensation (WC)- 09i24/2009 Social Security Social Website E Program Operations Manual System (POMS) Effective Dates: 09/24/2009 - Present BASIC (09-08)

More information

A Claims Adjuster s Guide to Excess Workers Compensation Insurance Presented by the Safety National Claims Department

A Claims Adjuster s Guide to Excess Workers Compensation Insurance Presented by the Safety National Claims Department A Claims Adjuster s Guide to Excess Workers Compensation Insurance Presented by the Safety National Claims Department This guide provides Claims Adjusters working in TPA and self-administration environments

More information

Massachusetts General Law Chapter 152, 25O and 53A. Classification of risks and premiums: distribution of premiums among employers.

Massachusetts General Law Chapter 152, 25O and 53A. Classification of risks and premiums: distribution of premiums among employers. 1 A. General Massachusetts General Law Chapter 152, 25O and 53A. Classification of risks and premiums: distribution of premiums among employers. 1. Who May Insure Workers Compensation Risks Any insurance

More information

Basic Reinsurance Accounting Selected Topics

Basic Reinsurance Accounting Selected Topics Basic Reinsurance Accounting Selected Topics By Ralph S. Blanchard, III, FCAS, MAAA and Jim Klann, FCAS, MAAA CAS Study Note The purpose of this study note is to educate actuaries on certain basic reinsurance

More information

Below is a general overview of Captives with particular information regarding Labuan International and Business Financial Centre (Labuan IBFC).

Below is a general overview of Captives with particular information regarding Labuan International and Business Financial Centre (Labuan IBFC). LABUAN CAPTIVES Below is a general overview of Captives with particular information regarding Labuan International and Business Financial Centre (Labuan IBFC). Kensington Trust Labuan Limited is a licensed

More information

HOW TO DETERMINE THE VALUE OF A WORKERS COMPENSATION CASE What Is Your Work Accident Case Really Worth?

HOW TO DETERMINE THE VALUE OF A WORKERS COMPENSATION CASE What Is Your Work Accident Case Really Worth? HOW TO DETERMINE THE VALUE OF A WORKERS COMPENSATION CASE What Is Your Work Accident Case Really Worth? By Michele S. Lewane, Attorney at Law Michele S. Lewane Injured Workers Law Firm 7826 Shrader Road

More information

Insurance Commission of Western Australia ANNUAL REPORT 2011. Insurance Commission of Western Australia. Key performance indicators 2011

Insurance Commission of Western Australia ANNUAL REPORT 2011. Insurance Commission of Western Australia. Key performance indicators 2011 ANNUAL REPORT 164 Insurance Commission of Western Australia Key performance indicators ANNUAL REPORT 165 CERTIFICATION OF KEY PERFORMANCE INDICATORS We hereby certify that the Key Performance Indicators

More information

CONGRESS OF THE UNITED STATES CONGRESSIONAL BUDGET OFFICE CBO. The Distribution of Household Income and Federal Taxes, 2008 and 2009

CONGRESS OF THE UNITED STATES CONGRESSIONAL BUDGET OFFICE CBO. The Distribution of Household Income and Federal Taxes, 2008 and 2009 CONGRESS OF THE UNITED STATES CONGRESSIONAL BUDGET OFFICE Percent 70 The Distribution of Household Income and Federal Taxes, 2008 and 2009 60 50 Before-Tax Income Federal Taxes Top 1 Percent 40 30 20 81st

More information