Workers’ Compensation Rating Board Requests 22% Loss Cost Decrease
The New York Compensation Insurance Rating Board (NYCIRB) has announced that it is seeking a double-digit decrease in Workers’ Compensation insurance loss costs. The NYCIRB’s Board of Governors voted to file for a decrease of 21.9% in the overall loss cost level in New York State, effective October 1, 2026.
The board’s filing is subject to approval by the New York State Department of Financial Services (DFS). If DFS approves the filing, loss cost levels will decrease for the tenth consecutive year. The proposed decrease follows a 13.2% reduction in 2025.
Loss costs are not premium rates. They reflect the expected cost of paying losses plus adjustment expenses. Each insurance provider, including the New York State Insurance Fund, applies a factor known as a loss cost multiplier (LCM) to a loss cost to determine the rate. The LCM increases the loss cost to account for insurer overhead and expected profit. DFS reviews and approves filed LCMs for each private insurance carrier.
Action by DFS on the filing is expected by mid-July.
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