The Division of Insurance issued its official decision on March 27, 2020
On December 20, 2019, the Workers Compensation Rating And Inspection Bureau submitted a Rate Filing to the Division of Insurance on behalf of its members. The filing submitted only two years after the previous filing which resulted in a 12.9% rollback in rates, initially sought a 3.8% decrease in the average statewide workers’ compensation rates. Following a public comment hearing on January 23, 2020, the Division had a prehearing conference with three parties appearing for the rate hearing: The Workers’ Compensation Rating and Inspection Bureau of Massachusetts, the State Rating Bureau, and the Attorney General requested a postponement to explore a possible resolution by stipulation.
On March 13, 2020, the parties submitted to the Division hearing officer a proposed stipulation that they were submitting for approval by the Division.
The Division of Insurance announced on March 27, 2020, that it had approved the stipulation providing a 6.8% reduction in the existing overall average workers’ compensation insurance, for all policies effective on or after July 1, 2020. The Division noted that the rate decrease, which is actually 3% more than the original request, stemmed from a compromise reached between the State Rating Bureau, the Workers’ Compensation Rating and Inspection Bureau of Massachusetts (WCRIB) and the Attorney General’s Office. In commenting on the increased rate decrease, Commissioner of Insurance Gary D. Anderson noted the importance of this reduction for policyholders during these uncertain times.
“We appreciate the collaboration by all the parties to lower workers’ compensation rates. This relief removes any further delay and uncertainty for policyholders and is especially important for businesses grappling with the economic impact of the COVID-19 public health crisis,” said Commissioner of Insurance Gary D. Anderson.
Except for a few limited circumstances, all Massachusetts businesses must purchase workers’ compensation insurance to provide for lost wages and other expenses for employees who are injured while on the job. A 6.8% decrease in premiums will result in much-needed savings for business owners across the Commonwealth in these troubled economic times.
The State Rating Bureau
The State Rating Bureau, within the Division of Insurance, serves as a consumer representative in hearings on the appropriateness of rates filed by auto, workers’ compensation and health insurance carriers.
The Attorney General’s Insurance and Financial Services Division
The Attorney General’s Insurance and Financial Services Division performs key consumer protection functions including participating in insurance rate cases, as well as investigating unfair or deceptive practices involving the insurance, securities, and lending industries and protecting consumers, municipalities, and the state in civil matters relating to these industries
How to access the official decision
For those individuals or entities interested in accessing the Division of Insurance decision, it can be accessed here: R2019-01; WCRIB Insurance Rate Filing; Issued March 27, 2020.
