2023 Regulatory Ratemaking Changes

What is the impact of the recent statute and rule change?
FAQ

A general description of the impact can be found in Circular 22-1809. Further details of the impact were provided in the Executive Summary of the 2023 Ratemaking Report.
How will rate filings change as a result of these changes?
FAQ

The Minnesota Department of Commerce updated their filing procedures documents. Trend, 27^th to ultimate loss development, and loss adjustment expenses are no longer loaded into the loss cost multiplier (LCM). Please note, carriers seeking a 1/1/2023 rate filing effective date must submit their filing to Commerce by 11/1/2022.
Is the Special Compensation Fund assessment affected by these changes?
FAQ

The Special Compensation Fund (SCF) assessment is calculated by dividing the insurers’ 2023 funding liabilities by the insurers’ 2021 DSR pure premium. Note that the 2021 DSR pure premium and the 2023 DSR pure premium definitions are different.

Due to regulatory changes, the definition of DSR premium has been expanded to include development to ultimate, trend, and loss adjustment expenses for the 2023 and subsequent years. Therefore, for policies written in 2023 and subsequent, carriers choosing to utilize an assessment rate may wish to account for the DSR premium definition change.
How do I get my other questions answered?
FAQ

Please direct any questions to our Actuarial Services Department at 952‐897‐1737, Option 3, or by emailing our office at actuarial@mwcia.org.