The company is aiming to implement a 15% rate increase to its hospitals and other facilities lines of business on April 1, 2021.
Coverys subsidiary ProSelect Insurance Company will increase rates on its hospital line of business next year, pending regulatory approval. The company is aiming to implement a 15% rate increase to its hospitals and other facilities lines of business on April 1, 2021. This follows a 15% rate hike implemented at the start of 2019 and is slated to go into effect in New Jersey.
ProSelect is hoping to buffer against rising loss ratios in the Garden State, with the carrier average a selected loss and ALAE ratio of 137.8% in New Jersey. Losses in 2018 were particularly harsh for the carrier, with a loss ratio of 179.2%, though its 2019 numbers improved dramatically, with losses dropping to 72.1%. While reported and expected claims have dropped, creeping growth in severity trends has been a concern for the carrier, both in New Jersey and on a countrywide basis, mirroring current trends within the segment as a whole for most carriers writing hospital business.
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