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Claims Data and Payroll – Two Headed Workers Comp Monster

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Workers Comp Claims Data and Payroll

Workers Comp claims data and payroll must be important. I have received many inquiries about what changes are upcoming on 10/1/09 for E-Mod/X-Mod calculations. There are changes coming and they are not minor. Believe me, they cannot be ignored unless your company has limitless funds. Your Experience Modification Sheets whether promulgated by the NCCI, WCIRB, or a State Rating Bureau are going to be even more confusing than they are now. I have examined sample ones and my head started to spin.

Graphic Of Claims Data and Payroll Calculating
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Accurate claims data including reserves used to be just as important as payroll, but not as important as Workers Compensation Classification Codes. The claims data including reserves may now be the most important thing to your bottom line and could exceed Class Codes as being the most important set of data for your Workers Comp premiums. The fact is that no one knows how it will affect any company’s premiums as the new rules are not yet in place. If this does not scare you, then just open up the checkbook and use your best pen to write a big check.

Believe me, I am not saying that the new rules will discriminate against any one company or group of companies. That is just not true. Companies with inaccurate claims data and reserving are now going to feel the financial effects very rapidly. Your Workers Comp loss runs are now golden to you. If your company ignores them, please see the last sentence in the previous paragraph.

Picture Businesswoman with Binary Digits Claims Data and Payroll Experience Modification
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The new E-Mod/X-Mod calculations are going to make the unsafe companies take on more of a burden and pay a larger share. There used to be two variables that mattered – the number of claims and their severity. Now there are going to be more than 10 data inputs that are going make your E-Mod/X-Mod more specific to your company.

I wish that I could go more into the analysis. No one has seen a live version applied to a real company yet. Simulations are not real world examples.

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Table of Contents

James Moore

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Mgmt Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications

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