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Are California’s WCIRB XMods Changing Like NCCI’s EMod System?


California’s WCIRB XMods Resemble NCCI E-Mods Now

Are California’s WCIRB XMods changing to be more  like NCCI‘s EMod system ? Will X-mods from CA’s WCIRB have a split-point increase similar to the NCCI’s E-mods? I received this question in my email over the weekend.

Graph And Blue Arrow Increase California's WCIRB XMods Like NCCI's EMod System

The changes to the EMod system are basically going to increase the primary loss part of the claim reserves in 2013 from $5,000 to $10,000. The split point will then increase to $13,000 in 2014 and then to $15,000 + some unknown inflation factor in 2015. Almost all the states have accepted the new primary loss (split point) increases.

There has been much debate whether or not there will be a negative impact on the overall NCCI ratings. NCCI has basically said no. In my opinion, we will know in 2016 after the overall effect of the primary loss (split point) increases. The split point analysis will definitely have a look-back characteristic.

CA’s rating bureau – the WCIRB has said up until today there is no such split point increase on the near horizon. A few years ago, I wrote this article on how the WCIRB is becoming more similar to the NCCI each year. Does this mean the WCIRB will follow suit?

Split Point Arrow California's WCIRB XMods Vector

I read over the WCIRB’s main website. I saw no articles on their main page that would indicate the split point is increasing. The WCIRB currently differs with the NCCI on the split points The NCCI is at 5,000. The WCIRB’s maximu primary loss (split point) is currently $7,000.

The WCIRB will likely have to change the split points eventually. A reporter that I spoke with last week from CA seemed to have a wait and see attitude on any upcoming WCIRB changes.

The bottom line is whether you are in CA or in any state, your company’s safety and risk management are going to be very worthwhile investments. The WC accident that never happened is the best company budgeting technique. This technique will become even more prevalent as the rating bureaus change the rules.

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Experience Mod Predictions – Accuracy Depends on Who/Whom You Ask Most Experience Mod predictions can be a tedious process that has cofounded most people working

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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