In North Carolina
Average Loss Costs Decrease 16%
In its filing submitted on August 29, 2018, the North Carolina Rate Bureau has advised the North Carolina Commissioner of Insurance that average loss costs in workers’ compensation have decreased 15.9% from loss costs approved effective April 1, 2018. The latest loss costs would be applicable to policies becoming effective on and after April 1, 2019.
The rate bureau adds that within each industry group the change to a particular classification will vary from the average depending upon the volume and character of the particular classification experience. Specifically, the declines in loss costs are as follows:
- Manufacturing -14.5%
- Contracting -15.2%
- Office & Clerical -18.0%
- Goods & Services -18.0%
- Miscellaneous -13.4%
“The prospective loss costs are based on historical data that have been developed and trended to their ultimate values and, except for loss adjustment expenses that are specifically authorized to be included in the loss costs by statute, include no provisions for expenses, dividends, profit or contingencies,” the rate bureau says.
“The general explanation for the filed decrease, which follows a decrease last year as well, is insurance carriers have had fewer workers compensation claims and are paying less for these claims. This is evidenced by the -12.2% change in loss experience and a change of -4.8% in trend,” the agency added.