IWIF reduces rates 6.8% due to fewer claims, improved workplace safety
(TOWSON,
MD)The board of directors for IWIF Workers’ Compensation Insurance has approved a 6.8% overall reduction in base rates predicated on an annual rate analysis performed by Deloitte and Touche, an independent, consulting actuary. Furthermore, twenty-seven industries will receive significant rate decreases. The rate changes are based on IWIF’s historical claims data and actuarial principles. They will be effective as of January 1, 2009.
As reported by IWIF, these reductions are driven largely by a continued decline in IWIF claims frequency over the past year. Additionally, the U.S. Bureau of Labor Statistics reports the Maryland injury rate in 2007 dropped to 3.7 injury cases per 100 fulltime workers, a decline from 3.8 in 2006 and 4.2 in 2005.
IWIF states the primary driver has been its persistent focus on fostering a safety culture in the workplace. IWIF has successfully introduced safety programs, and policyholders have adopted them and other initiatives that have yielded safer working conditions for employees.
“I am pleased that IWIF is in a strong financial position and can offer many of its customers a rate reduction on their premium. This rate change will benefit many of our customers as well as strengthen the business economy in the state,” says Tom Phelan, President and CEO. “Ultimately, however, I am most pleased with the continued decline in the number of injured workers in Maryland.”
Rial Simons, Chief Actuary for IWIF, indicated that these pricing initiatives will allow IWIF to attract and retain competitive business in an effort to continue to generate reasonable revenue. At the same time, these rate reductions will help to keep workers’ compensation insurance equitable, available and affordable to all Maryland businesses.
Established in 1914, IWIF is a fully self-supporting insurance company that operates solely from premium and investment income. IWIF’s assets and reserves total $1.5 billion.
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