The State of New Jersey’s Insurance Commissioner has overruled and improved upon the recommendation given by the New Jersey Compensation and Inspection Bureau (NJCRIB). NJCRIB is the exclusive rating bureau for New Jersey. This comes on the heals of the Florida Commissioner refuting and improving upon the rate decrease suggested by the National Council of Compensation Insurance (NCCI). As modeling for this line are frequency-driven and thus pretty consistent, these types of deviations are not usual.
From our friends at insurancejournal.com
Monday, November 25, 2019
Commissioner Overrules Rating Bureau; Approves 5.8% Decrease in Rates
Another state’s insurance commissioner has overruled a rating agency and forced a larger decrease in in workers’ compensation overall premiums.
The New Jersey commissioner of banking and insurance, Marlene Caride, last week announced that she had approved a 5.8% decrease in rates and rating values for 2020. That’s two percentage points greater than what the New Jersey Compensation Rating and Inspection Bureau recommended in September, the bureau reported.
The average rate change for industry groups ranges from a 4.5% decrease for office and clerical, to a 7.7% decrease for contracting. The commissioner’s approval marks the fourth straight year that rates in New Jersey have dropped, due to what industry experts have said is a nationwide trend toward fewer injuries and fewer claims by workers.
The rating bureau’s filing was based on three policy years and recent adjustments to benefit levels.
The New Jersey commissioner’s action comes three weeks after Florida’s insurance commissioner demanded — and received — a larger loss cost decrease from the National Council on Compensation Insurance.
The NCCI had recommended a 5.4% decrease for 2020, but Florida Commissioner David Altmaier asked the council to examine another year of experience and revise its filing to a decrease of 7.5%. The NCCI complied, and the decrease was approved Nov. 6.
The New Jersey rates take effect Jan. 1.
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