The Pennsylvania workers compensation market is a competitive, innovative and dynamic system in which many different programs and actions interact to determine policy provisions and prices. To assist all system participants in better understanding and monitoring the principal features of this evolving system and their respective impacts on policy costs, the PCRB has developed the following Market Profile Report.
The Market Profile Report is initially based on policy information filed with the PCRB when each commercial insurance policy is issued. These reports are titled "Market Profile Analysis-Policies Effective (Date) through (Date)" These reports reflect policy estimates instead of final audited exposures. As policies mature and unit statistical reports begin to be submitted by carriers, the policy information originally used to produce the Market Profile Reports is replaced by the unit statistical data. Unit statistical data reflects final audited exposures.
The Market Profile Report presents aggregate statistics pertaining to all commercial workers compensation coverage other than coal mine business in Pennsylvania for policies having effective dates falling in the indicated time period. Combined exposures, rating values and implied premium components are summarized across all such policies, thus providing an overall profile or indication of the relative magnitude of the effects of various pricing programs within the Pennsylvania system. The sequence of pricing programs as presented is consistent with the approved Premium Algorithm filed by the PCRB with the Pennsylvania Insurance Department.
The data presented in the Market Profile Report is summarized across many thousands of policies issued by hundreds of different commercial insurers. These aggregate results will necessarily vary from those applicable to individual policies. In fact, not all of the pricing programs presented in the Market Profile Report can apply to any single workers compensation policy. Accordingly, the Market Profile Report must be used as a general guide and informational resource, and not as an absolute model for individual pricing procedures or objectives.
The Market Profile Report is subject to continuing fluctuation as additional data is reported to the PCRB. In order to provide the best possible flow of information, the PCRB will release preliminary reports once a substantial majority of expected data has been received and processed. Data published in these reports will be updated monthly, and new quarters will be added as additional report periods become available. Accordingly, viewers should periodically revisit these reports to obtain the most recent available data.