A few industries increased over 15% in their base rate. Those include Window Cleaners (over 2 stories), rostered volunteers of municipalities, and a variety of manufacturers such as: Oil, pulp, battery, glue, and cottonseed.
A fairly new classification, inventory counters, was at the top of the list. The fluctuation in that rate is somewhat expected as the experience will tend to even out over time. The newness of anything being measured results in a a larger deviation as samples are added.
The winning class codes, with the most percentage reduction for the year, are
- Asphalt Plants operated by the paving contractor
- carpet manufacturers.
Following right behind those two codes with favorable base rate reductions were
- Liquor Bottling
- Architechts & Engineers
- Pipe Mfg
- Paperhanging.
All the standard exception classifications (Clerical, Drivers, Outside Sales) took a small rate reduction in between 5% and 10%.
So how exactly does all this information affect our clients?
While the rate reduction shows a positive trend in claims costs for the previous years, we shouldn't get too far ahead of ourselves in assuming all premiums are coming down for our clients. If the advisory rate is down, then the expected loss rate is down too. That means mods could jump slightly as the denominator has been reduced mathematically.
The converse is true when looking at the rate increases. Those industries will probably have a drop in the mod, not counting the change in split rate that applies this year.
In the end, there is no golden rule in predicting an individual client's premium change based on rates. Each case needs to be specifically evaluated, but that can be done about 120 days before their renewal. Researching their mod and the revised rates prior to your renewal meeting can put you in a position to be viewed as a proactive advocate on their behalf.
The data is out there, you just need to go look for it.
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