Travelers Property Casualty Co. of America, a unit of the Travelers group of companies, received approval for a 7.5% rate decrease in California that would affect $42.8 million in workers' compensation premiums, making it the most impactful rate decrease approved nationwide during December 2016, an S&P Global Market Intelligence analysis shows.
All of the 10-most significant workers' compensation rate decreases in the month were approved in the Golden State, including four approvals for Berkshire Hathaway Inc. subsidiaries. In total, 11 Berkshire units received approvals for 23 rate cuts during December 2016, resulting in a potential collective premium decrease of $66.3 million across eight states.
That California saw that most significant decreases should be no surprise as the state's insurance commissioner in late October 2016 issued a workers' compensation advisory pure premium rate of $2.19 per $100 of employer payroll — 13.8% lower than the rates filed by insurers.
Liberty Mutual Group received the most number of rate-cut approvals in 10 states, collectively summing up to a calculated written premium decrease of $28.8 million. Chubb Ltd. and Nationwide Mutual Group followed closely behind Liberty Mutual with 29 and 28 rate decrease approvals, respectively, for their workers' compensation businesses.
Click here for a template providing rate changes for a selected entity, state or type of insurance over a selected time period using interpretive charts and histograms. With this template, one can also view information on each filing along with key metrics related to premiums, approval time and affected policyholders.
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