WCIRB Becoming California’s NCCI
The WCIRB Is slowly becoming California’s NCCI.
While attending a recent California Workers’ Compensation Insurance Rating Bureau (WCIRB – the rating bureau for California) conference, I started to notice that the WCIRB was adopting rules that were similar to Boca Raton’s NCCI. I thought I was possibly over-comparing the two agencies.
The rating bureau recently adjusted some of their rating values to more accurately reflect how a company’s safety program is functioning. The WCIRB performed an actuarial analysis to see how all of the companies in California would fare with the change. I thought I would compare their recent NCCI changes that occurred last year.
- Approximately 65% of experience rated policyholders received a lower experience modification than would otherwise have been the case as a result of these formula changes.
- Approximately 29% of policyholders received a higher experience modification and
- Approximately 6% of the policyholders were unaffected by the 2010 formula changes.
- Roughly 5% of experience rated policyholders saw increases of between 11 and 20 points in their experience modifications
- Approximately 2% saw increases of more than 20 points. The small percentage of policyholders who experienced large increases were employers with worse than average underlying loss experience.