The Easiest Way To Waste Time On Workers Comp Before The New Year
I have discovered the best way to waste time on Workers Comp in December. Workers Compensation reserves do not directly apply to a policy that renews within 30 days. We receive many emails and phone calls in December with inquiries on reserve levels. Many CFO’s, owners, risk managers, agents (etc.) want to clean up the loss runs before the end of the year.

If the upcoming renewal on January 1st is the reason you wish to do a loss run and reserve review, you are wasting your time. The best way to spend your time if you have a 1/1/2014 renewal date is by starting a loss run review schedule for 7/1/2014. This is when your reserve reviews peg to your Experience Mod (E-Mod) for your 1/1/2015 renewal date.
The loss run dated 7/1/2013 should be used for your 1/1/2014 renewal. The best way to look at the missed opportunity is by being prepared for your 7/1/2014 Unit Statistical Date.
There are numerous articles on this blog that pertain to planning a loss run review program. Using the search box in the top right part of the blog will be the easiest way to find the articles on loss run or reserve reviews. If you wish to click directly over to the articles, they are listed below with the proper links.
The main goal is to make sure that your company starts to review your loss runs long before the date your E-Mod affects your insurance program. As always, a great safety program will keep your company from having to worry about loss runs.
If there are no accidents, the loss runs will have no claims listed on them. The lack of claims on your loss runs means your company is keeping out of the E-Mod system as much as possible.

Articles for loss run review links are below:
Unit Stat Date
Reserve Review Program
One group of companies will find it best to start analyzing their Workers Comp reserves in December. I will cover that next time.
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