Restatement of the Consideration of Investment Income in Workers' Compensation Insurance Ratemaking

The purpose of this restatement of the treatment of investment income on reserves in workers' compensation insurance ratemaking is to appraise the expected total return on the workers' compensation insurance transaction, inclusive of investment income, and to describe the consideration given to investment income in the ratemaking process. With rising claim costs and, therefore, rising rates markin6 its recent history, workers' compensation insurance has been the object of close examination in the search for relief from rising insurance costs.