Accident Year Data – Workers Comp Term
Accident year data is often used for statistical comparison analysis. Most of the time when I have Accident Year Data, the information involves:
- The inclusion of all carrier loss and exposure data (or that of a group of carriers or within a book of business)
- Had taken place (regardless of when the losses are reported)
- During a given 12-month period of time as all premium earned,
- With no regard as to when the premium was written, during the same period of time.
I like to refer to this type of data as snapshot data as an employer can hone it on a variable or a given period of time and analyze it very heavily. One has to be very careful of just examining one year of accident data. Actuaries and statisticians call this the naive approach to data analysis.
We always recommend using the last five years of data at a minimum if you have that information available. There are many sources to compile this data. The use of Excel or Quickbooks is a great method to analyze the data.
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