Question: HOW ARE THEY DOING BETTER THAN EVERYONE ELSE? Will the Loss Costs decrease really affect pricing given that in PA a broker/carrier can use schedule credits or debits?

The PCRB has submitted to the Pennsylvania Insurance Department a filing of Pennsylvania loss costs, with a proposed effective date of April 1, 2012. That filing proposes an overall average loss cost decrease of 5.66 percent.

According to the PCRB, claims frequency has experienced an average annual decline of 5.7% between 2003 and 2009, even though indemnity costs increased by 5.2% per claim and medical severity increased by 4.8%.  The filing needs the approval of the Pennsylvania Insurance Commissioner Michael F. Consedine. 

Based on the filing, effective April 1, there would also be a 0.0037 increase in the employer assessment factor—from 0.0188 to 0.0225—in order to support the Pennsylvania Uninsured Employer’s Fund.

The PCRB circular is here.