2019-2020 Premium Rates

Property/casualty program

There will be an average rate increase of 4.5% for members with property/casualty coverage renewing on or after Nov. 15, 2019. Specific changes include property rates increasing 6%, liability rates increasing 6%, faithful performance bond rates decreasing 10%, and liquor liability rates decreasing 5%.

Because premiums are also affected by things like changes in members’ expenditures, property values, payrolls, experience rating, and other exposure measures, it’s unlikely individual premiums will increase or decrease by those exact percentages.

The primary drivers of this year’s rate increase are increased reinsurance costs and changing claim patterns, including exceptionally high property losses and increased police and employment liability claims.

Workers’ compensation program

Members with renewals on or after Jan. 1, 2020, will see a rate increase of approximately 9%. It’s important to note, though, that it’s unlikely individual premiums will increase by that exact amount because premiums are also affected by things like changes in members’ expenditures, payrolls, experience rating, and other exposure measures.

The increase is needed to fund costs for claims related to post-traumatic stress disorder (PTSD). Based on our experience since PTSD became compensable in 2013, it is projected that PTSD will account for approximately $9.4 million of the $52 million in total workers’ compensation claims the Trust expects to incur in the coming year.

In response to this rapidly evolving issue, the Trust has taken several significant steps. Among other things, these include creating a staff position that will focus on promoting research, awareness, diagnosis, prevention, and treatment.

In addition, the Trust will continue providing education and training on the topic, collaborating with other stakeholder organizations to address both the financial and human costs of PTSD, and working with the Legislature to identify long-term structural solutions to the issue.

New experience rating for auto premiums

The Trust uses an experience rating component to adjust members’ liability, workers’ compensation, and auto premiums. A new formula for auto liability and auto physical damage will be introduced, which will reflect a simple debit and credit experience rating mechanism.

The new formula will look at three years’ worth of auto claim frequency and premium data, excluding the most recent year, for each member. Only those claims that have a total net loss of greater than $1,000 are used in the calculation, and members with premiums of less than $3,000 per year will not be experience rated.

The amount of premium that will be credited or debited will be capped at 15%.

Learn more about experience rating (pdf)