NY Insurance Superintendent Proposes WC Alternative
Eric R. Dinallo, New York Insurance Superintendent, unveiled an alternative to the state workers comp system that presently allows carriers to collectively set rates through the state New York Compensation Insurance Rating Board.
In a report to Gov. Eliot Spitzer, Dinallo stated that he instead wants to adopt a competitive, loss-cost model with rates based on each carrier’s risk factors, underwriting experiences and expenses.
Rates would be subject to prior approval by the Insurance Department, and industry-wide costs and expenses would be published.
The proposal presented by Dinallo would continue having the New York-based CIRB collecting and analyzing rate-making data. However, the CIRB, the private association of insurers, would cease proposing rates on behalf of all workers comp carrirs in the state.
Reforms signed into law by Gov. Spitzer earlier this year called for ending the CIRB’s rate-making authority, but did not establish an alternative.
Published on September 6, 2007
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