1. CASUALTY ACTUARIAL SOCIETY RATEMAKING SEMINAR March 11 – 12, 2004
New York Workers Compensation
Ratemaking & Other Issues
Martin G. Heagen, CPCU, WCCP

2. CAS RATEMAKING SEMINAR NEW YORK WORKERS COMPENSATION
Loss Ratio Projections
Trend
Classification Pricing
Rate Filing History
Individual Risk Pricing
Unique New York Issues

3. CAS RATEMAKING SEMINAR NEW YORK WORKERS COMPENSATION
Ultimate Loss Ratios
Incurred Method
Paid Method

4. CAS RATEMAKING SEMINAR NEW YORK WORKERS COMPENSATION
Ultimate Indemnity Loss Ratios

5. CAS RATEMAKING SEMINAR NEW YORK WORKERS COMPENSATION
Ultimate Medical Loss Ratios

6. CAS RATEMAKING SEMINAR NEW YORK WORKERS COMPENSATION
Trend
Claim Frequency
Claim Cost
Loss Ratio

7. CAS RATEMAKING SEMINAR NEW YORK WORKERS COMPENSATION
Indemnity Claim Frequency
(Claims per $1 M Premium at Present Rates)

8. CAS RATEMAKING SEMINAR NEW YORK WORKERS COMPENSATION
Medical Claim Frequency
(Claims per $1 M Premium at Present Rates)

9. CAS RATEMAKING SEMINAR NEW YORK WORKERS COMPENSATION
Average Indemnity Claim Cost

10. CAS RATEMAKING SEMINAR NEW YORK WORKERS COMPENSATION
Average Medical Claim Cost

11. CAS RATEMAKING SEMINAR NEW YORK WORKERS COMPENSATION
Classification Ratemaking
9 Industry Groups
- Food & Beverage Mfg.
- Chemical Mfg.
- All Other Mfg.
- Contracting
- Stores & Dealers
- Prof. & Office
- Services
- Miscellaneous
-Maritime, Admiralty, Federal

12. CAS RATEMAKING SEMINAR NEW YORK WORKERS COMPENSATION
Classification Ratemaking Continued
Industry Group Differentials
5 Years of Data Irrespective of Class Size
9/11/2001 Losses (Cat 48) Excluded
Class Credibility Based on Losses, Separately for Serious, Non- Serious & Medical
Class Changes Limited To +/- 25%

13. CAS RATEMAKING SEMINAR NEW YORK WORKERS COMPENSATION
Historical Rate Level Changes

14. CAS RATEMAKING SEMINAR NEW YORK WORKERS COMPENSATION
Individual Risk Pricing

15. CAS RATEMAKING SEMINAR NEW YORK WORKERS COMPENSATION
Unique New York Issues
3rd Party Liability (Dole vs. Dow)
Section 110- Small Claims
Total Medical Costs Less Than 40% of Total losses
Last Benefit Change
Duration of Permanent Partial Claims
9/11/2001 Effect
Payroll Limitation For Construction Classes
Special Funds Assessments

16. CAS RATEMAKING SEMINAR NEW YORK WORKERS COMPENSATION
Ratemaking & Other Issues
Questions & Answers