The New York Compensation Insurance Rating Board (NYCRIB) has posted details of its filing for an 11.5% loss-cost increase in advance of a hearing scheduled for June 25 at the New York Department of Financial services.

NYCIRB said claims frequency in New York has stabilized following several years of decreases. The past five years showed a flat trend in claims frequency, NYCIRB said.

Increases in indemnity losses per claim accounted for an annual trend of 4.7% in the filing. Increasing medical costs per claim indicated an annual trend of 5.2%.

Claim costs are clearly on the rise, which means more employers will see adverse effects in the new experience mod split point being adopted by NYCIRB. In other words, as New York implements the new split point of $10,000 in 2013 and claim costs are on the rise, employers’ primary losses will dramatically increase. Even if frequency is flat, a greater portion of the losses per claim will be accounted as primary losses, resulting in higher experience mods, and subsequently higher premiums.

Brokers should reduce their clients’ mods now to keep them happy before they see their mods soar with the new NYCIRB split point mod change in 2013. Of course brokers can use this strategy with prospects as well.