BOSTON - In a case closely watched by other insurers, Eastern Casualty
Insurance Co. announced it will withdraw from the workers' compensation
market in Massachusetts, protesting rates proposed by the state
Division of Insurance.
Eastern, the state's third largest workers' comp carrier, made
its announcement after Travelers Group stopped writing new policies
for Massachusetts construction companies, according to the Boston
Globe. Travelers is the second largest workers' comp carrier
in the state.
A.M. Best quoted an Eastern official as saying the company's workers'
compensation rates are only 43 percent of its 1993 rate levels,
and that in 2000 the company paid $1.10 in claims for every $1 in
premium it took in.
Eastern had broken from usual practice by submitting its own rate
request because it said the Workers' Compensation Rating & Inspection
Bureau rate applications have been inadequate in recent years to
cover costs. Eastern wanted an 11.6 percent increase.