N.Y. COMP WRITERS SEEK 9.3% HIKE:

Their 29.3 percent increase having been rejected by state officials last month, workers compensation insurers in New York have tried again, this time for an average 9.3 percent increase. Maintaining that it has responded to the concerns raised by the New York State Insurance Department when it rejected its previous filing, the New York Compensation Insurance Rating Board re-filed on Aug. 6 with the lower bid. NYCIB officials said they also met with department to discuss a new rate recommendation after the first one was defeated. If approved, the new rates would go into effect 75 days from the date of approval. In the meantime, a separate rate change is slated to go into effect beginning Oct. 1, 2004. Effective that date, the state assessment, unaffected by the rate filing, increases from 14.3 percent to 15.1 percent of premium. In his July 15 decision turning down the 29.3 percent bid, Superintendent of Insurance Gregory V. Serio questioned the level of profitability reported by the workers’ compensation industry in recent years. Insurers reported a return of 4.1 percent for 2004 and 4.5 percent in 2003. The department believes that the true rate of return for the industry is as high as 8.1 percent.