Mr. Almer's comments today followed the announcement by the State Insurance Department last week that it would permit insurers to build "catastrophe loads" into their reserves "to better manage potential disasters and ensure continued stability in the workers' compensation system.

The announcement by Insurance Superintendent Gregory V. Serio, said that the average workers' comp insurance rate would not change and there will be a 1.2 percent decrease in assessments to keep the rate level.

Mr. Almer said the decrease would offset an overall catastrophe load of 3 percent as percentage of premium, a figure that could vary according to occupational risk ratings.

The National Council on Compensation Insurance, the rate advisory company based in Boca Raton, Fla. had recommended a four percent surcharge for comp policies, in the states it services, but no state has approved any to date.

Studies by the Council are underway to provide more support for a catastrophe increase. "We're putting those together now," said Gregory Quinn, an NCCI spokesman.

Mr. Almer said the catastrophe load percentage coincidentally translates to three cents. So if an insured was paying $1.50 per hundred dollars in payroll the rate would now be $1.53.

"Hopefully this can act as a model or guideline for some of the other states," Mr. Almer said.

Mr. Serio's announcement noted that for eight consecutive years, average workers' comp rates have been stable or decreased.

The state in 1996 made legislative changes to prevent suits against employers by manufacturers of injury-causing equipment, made workers' compensation fraud a felony and created a workers' comp inspector general.

The New York board had sought a 9.4 percent increase last month, which was rejected. "Membership is not happy with that," Mr. Almer said. But, membership is pleased that a catastrophe load was approved, he said.