As of October 2015, the Mass. Workers’ Compensation Residual Market Share is Over 19%
On December 23, 2015, the Workers Compensation Rating & Inspection Bureau of Massachusetts, better known as the WCRIBMA, submitted a rate filing to the Division of Insurance seeking a proposed statewide increase in average rates of 6.4%.
In December 2013, the WCRIB filed an industry-wide rate filing requesting an overall average increase of 7.7 percent. After conducting over a month-long hearing on the matter, the DOI announced that it had reached a settlement with both the WCRIB and the Attorney General’s office that would result in a zero overall rate change, effective April 1, 2014.
It has been two years since the WCRIBMA submitted a rate filing to the DOI
This latest rate filing, submitted on behalf of WCRIBMA members, seeks a 6.4% increase in average rates for industrial classes and an 8.8% decrease for F-Classes. The proposed effective date of the rate filing July 1, 2016. The WCRIBMA has filed no change to expense constants. It is now up to the Commissioner of Insurance to review the rate filing request and issue a hearing notice on the matter.
In anticipation of the Rate Filing, the WCRIBMA informed its members in Circular Letter No. 2271 that it, “…has been issuing ratings effective on July 1, 2016 and subsequent with a preliminary status.”
Until a decision is made by the DOI, however, the WCRIBMA also advised that carriers should attach a “Massachusetts Pending Premium Change Endorsement (WC 20 04 01)” to all new and renewal policies effective on or after July 1, 2016. A copy of that endorsement can be found at the end of Circular Letter No. 2271.