Updated Claims Loss Runs Are Critical To Cost Savings
Your WC loss runs should be up to date at all times. Online access is key as carriers and TPA’s will usually allow ad-hoc reports for analyzing loss data.

January 1 is the most popular renewal date for Workers Comp policierenees even though January 1 should be avoided for policy renewal dates.
Most policies with a January 1, 2015 renewal date have a very important date occurring in the near future. Generally, on June 30th at the close of business, the applicable Total Incurred figures will be pegged by NCCI or your state’s rating bureau.
In this case, June 30th, is the Unit Statistical reporting date. Your company’s E-Mod/X-Mod will usually be calculated in the next 90 – 120 days using the June 30th figures.
If your loss runs are not up-to-date, how will you know whether or not the Total Incurred figures are correct on your Workers Compensation files? If your company has a January 1st renewal date, you will usually have 67 days from today to negotiate any reserve figures with your insurance carrier.
As I have said often, do not just call up the claims department or your agent and say the reserves (Total Incurred – Paid) are too high. This will only negatively affect the working relationship you have established with your Workers Comp claims adjusters. You need to be specific.
The key is knowing which claims have truly been over-reserved. Selecting the proper claims to question may lower your next years’ E-Mod/X-Mod. Selecting the wrong ones can be costly.
©J&L Risk Management Inc Copyright Notice