Page 4 - Microsoft Word - PA ANN RPT 2015 DRAFT.doc

PRESIDENT’S MESSAGE

Concluding a year in which the Pennsylvania Compensation Rating Bureau (PCRB) celebrated
its 100-year anniversary it otherwise was a year of stability but not without a fair share of
change.

This is my first opportunity and honor to report to you on the accomplishments and undertakings
pursued by the PCRB in 2015. Another milestone for the PCRB is the marking of the retirement
of our outgoing President, Timothy Wisecarver, who reported to you, year by year, on the
challenges and accomplishments of the PCRB. Without fail, I will venture to do the same while
at the start of doing so I tip my hat to Tim for the outstanding stewardship and guidance he
proved as leader of this organization for over 25 years.

In 2015 there were many issues met and projects pursued by the PCRB and its membership.
The workers compensation market in Pennsylvania remains stable with adequate pricing levels.
The April 1, 2016 Loss Cost Filing No. C-366 was made on December 1, 2015 and was
approved by the Pennsylvania Insurance Department as filed, an overall average decrease of
0.90 percent from existing loss costs. This filing is in contrast to the prior year’s approved
decrease in loss cost of 5.99%. The stability is attributed to a relatively steady economy and a
refined workers’ compensation benefit environment.

The market’s financial results show stable and continued improvement largely due to modest
growth in premiums, stable medical costs and moderating claims frequency. In the year ending
2014, the combined ratio was approximately 100%, a further decline of 4.5% from the prior year.
Premiums continue to grow slowly and steadily, compared to declines only a few years back.

A filing of rating values for Pennsylvania F-Classifications was not made in 2015, but is in
development with a proposed filing effective date of October 1, 2016. This differs from prior
years, where traditionally it was done simultaneously with the Loss Cost filing effective date of
st
April 1 . The longer term intention is to resynchronize this with the 2018 filing year, but not
delay an update to the F-Classifications any further this year.

In addition to the Loss Cost filing, please refer to the PCRB website for the following notable
circulars from filings initiated in 2015:

 Manual Revisions to Sections 1 and 2
 Revisions to Designated Auditable Payrolls
 Code 941, Social Rehabilitation Facility
 Code 986, Shelter or Halfway House – Residential – Non-Medical
Approved Effective April 1, 2016

 Revisions to Pennsylvania Statistical Plan Manual Housekeeping Items
 Premium Algorithm Update
Approved Effective July 1, 2016

 Policy Data Reporting – elimination of Hardcopy Criticisms
Approved Effective December 21, 2015

1