State Compensation Insurance Fund received approval for what may have been the most-impactful rate decrease nationwide during the second quarter, an S&P Global Market Intelligence analysis of approved workers' compensation rate filings reveals.
The California insurer of last resort requested an 8% rate cut in the Golden State that may result in a $129.0 million decrease in written premiums. As of year-end 2016, State Fund was the largest workers' compensation underwriter in California, having written $1.61 billion in direct premiums that year, according to statutory data. The new rate would go into effect statewide on Sept. 1 for both new and renewal business.
A majority of the most-impactful workers' compensation rate decreases in the quarter were approved by regulators in California. This includes five Berkshire Hathaway Inc. subsidiaries that received a 5.0% rate cut. American Financial Group Inc. units also received approvals from California that could lead to $12.3 million worth of premium decreases in the state.
This analysis includes 1,390 workers' compensation rate filings approved by regulators during quarter-ended June 30. Of those filings, 813 were for rate decreases and 161 were for rate increases. The remainder of the filings will have no impact on calculated premiums.
Click here for a template providing rate changes for a select entity, state or type of insurance over a selected time period. With this template, users can also view information on each filing along with key metrics related to premiums, approval time and affected policyholders.
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