WC Results/Premium Level Changes
Premium Level vs. Rate Level
Premium level change amount can be different from the rate level change amount.
The rate level change is the change arising from an actual adjustment to the manual rates. A premium level change is the additional premium generated through a number of different ways, such as a change in the premium discount table or expense constant. Neither of these affect the manual rates, but they will affect the amount of premium paid by policyholders in a state.
Of course changing manual rates will result in both a rate level change and a premium level change.
Indiana WC Premium Level Changes
- The nineties decade net change in Indiana premium level was +36%
- The first half of the decade experienced a +62.5% increase in rates
- The last half of the decade experienced a -13.3% drop in rates
- Assigned risk premium dropped dramatically from $103 million in 1991 to $10 million in 1999
- The 2000 decade experienced a net change in Indiana premium level of -7
- The decade demonstrates stability with mild swings from year to year. Except for the 7.4% decrease in 2002, all changes from year to year have been less than 5% up or down.
- Assigned risk premium was like the first hill of a roller coaster starting low in 1999 at $10 million, peaking at $68 million in 2003, and falling back to $28 million in 2009
- New assigned risk apps peaked in 2002, up 63% compared to 2001, a record increase
- Since 2002, new apps have decreased an average 15% per year 2003-2010.
Looking at recent years changes, the last three years (2017-2019) result in an overall decrease in costs of -26.9%. The three year period just prior to that (2011-2013) resulted in an overall increase of 9.6%