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North Carolina High Claims Cost – Quite Controversy


North Carolina High Claims Cost Shocker

Many of you responded to last week’s note on the  North Carolina High Claims Cost from the 16 states surveyed by the WCRI – Workers Compensation Research Institute. I was unable to let quite a few of the comments go through, as specific insurance companies were named in the posts by our readers. Thanks for the posts.

Picture Of Dollars North Carolina High Claims Cost Cash

We have already been threatened with lawsuits by some of the insurance companies over the last few years. I could not allow the responding posts to go through to the blog and end up in trouble.

I have looked over the study by the WCRI and it is legitimate. They are one of the bellwethers for Workers Compensation statistical analysis. The WCRI allows no political influence. The numbers are the numbers. I have bought a few of their studies over time.

The bottom line is that if the WCRI says it is true, the accurateness of the statement is without question. I have not had a chance to review the full study. You have to devote a weekend to reading the studies as they are not short.

50 % North Carolina High Claims Cost Graphics

The one thing that differentiates North Carolina is that the state uses the NCRB – North Carolina Rate Bureau instead of the NCCI based in Boca Raton FL. NCCI makes rate recommendations for approximately 50% of the states. That fact probably has no bearing on the WCRI study.

A follow up article was published which indicated medical costs were the reason for the rise in costs. As I said earlier, I will need to research the topic in depth over the next few weeks. I will report back after I have drawn my own conclusions. 

Is reform needed in NC? Medical costs are the most difficult to rein in by a state government unless the fee schedule is artificially lowered. Access to medical care may become a problem if the medical rates are too low.

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One Response

  1. James – Interesting post. I have been hearing rumors that the legislature is looking long and hard at doing away with the Rate Bureau, an entity that I understand is more or less unique in the country. I believe the impetus for such a move is largely due to the big ruckus last year about the substantial increase in homeowners rates for coastal residents, but obviously abolishing the Rate Bureau would impact other rates as well, and I wonder what effect that would have on workers compensation costs. Perhaps allowing the free market to set rates would result in more competition and lower rates, but I really don’t know. I’d be interested in your thoughts on that.
    George Simpson


James J Moore - Workers Comp Expert

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Management 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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