New York Insurance Department Slams Workers' Comp Insurance Industry
New York Insurance Superintendent Howard Mills, using Spitzer-like language to condemn the actions of workers' compensation insurance carriers in New York, denied the insurance industry's request for a rate increase on July 14, 2006. See the full opinion here.
"Insurers efforts to fight fraud - both claimant and employer fraud - can be said to be anemic at best" and "the paucity of fraud savings is most unsettleing" stated Mills. "Without a greater committment on the part of workers' compensation carriers in New York to fight fraud, this Department is hard pressed to justify any new overall average rate increases".
Citing workers' compensation insurer profits of 8.1% in 2002, 9.9%in 2003 and 8.7% in 2004, the Republican Pataki appointed Mills came down hard on insurers in favor of protecting the New York business community from insurance company gouging. The opinion was hailed by various business groups and leaders, including Randy Wolken of the Manufacturer's Association of Central New York.
It is apparent that government and business alike are finally realizing that insurance companies are the real culprits causing increasing workers' compensation costs in New York. With one of the lowest maximum workers' compensation benefit rates in the U.S. (injured workers have not had ANY increase since 1992), it certainly isn't claimant benefit levels. If Howard Mills keeps talking like this, he may keep his job in a future Spitzer administration!