WC Carriers Announce Retroactive Rate Corrections
Anticipate some downward adjustments in workers’ compensation (WC) commissions. Due to the data error in the April 1 2018 loss cost filings – and the resulting mid-year loss cost revision effective Jan. 1, 2019 – the Insurance Department is starting to see revised rates being filed.
As of this writing, seven insurance groups representing 28 carriers have submitted filings. The filings posted on the Insurance Department’s website describe the method by which the carriers intend to adjust premiums for those policyholders who were adversely affected by the error.
Based on what we’ve seen so far, it appears most corrections will be applied in conjunction with the annual premium audit. Since not all policyholders were equally impacted, the scope of applicability for the correction is important. It is anticipated that carriers will take all factors into consideration to determine which policyholders should benefit from a retroactive correction and to what extent.