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Split Point Reserve Changes by NCCI – Five Ways To Prepare


Five Ways To Prepare – Upcoming Split Point Reserve Changes by NCCI

NCCI has already enacted the Split Point Reserve changes. In my opinion, the first year will have the most impact as the Primary Portion of the loss will double from 5,000 to 10,000. This will have a big impact on employers that have numerous claims.

Vector Graphic of Hands split point reserve changes
(c) 123rf.com 

NCCI has warned employers for many years that having multiple medium-sized accidents is going to be the most damaging to your E-Mod resulting in sharp increases in premium. I calculated how this would affect a random employer in the near future using live figures.

The following are five ways to avoid such a whack to your Workers Compensation program:

  1. Understand when the rule is effective for your state or states – not every company will automatically take the hit. I covered the new NCCI rule dates in a previous post.
  2. Loss Run Review – it may be too late this year due to your Unit Stat date. If you still have time before your Total Incurred is recorded, then this will save your company $$$. If you have online access to your claims and reserve change data, you already are one step ahead.
  3. Enact or improve your safety program – repetitive accidents within a policy year are going to cause your company to pay massive premium increases. You can pay the $$ to enhance your safety program, or you can pay your insurance carrier 400% over what you would have invested in safety and risk management.

    Graphic Directional Split Point Reserve Arrows
  4. Explore alternatives to regular Workers Comp policies – PEO’s, captives, small and large deductibles, and risk retention groups are a few of the alternatives.
  5. Companies that bid on contracts – your E-Mod may possibly jump to over 1.0. That may bar your company from bidding on or keeping certain contracts that require a 1.0 Mod or less. You can have your E-Mod calculated much earlier than the rating bureaus – we offer that service.


The main recommendation is to remember to not just let the changeover happen without understanding exactly how the NCCI change will affect your E-Mod for the next three years. Ask questions often.

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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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