Work Comp Reserves And The Unit Statistical Date
Why do Work Comp reserves become so crucial on June 30th of each year? Please follow along as there are a few steps to this assumption / reality.

As mentioned often in this blog, the most workers comp policies renew on January 1st of each year. If your company or organization renews on January 1st, you should consider moving that renewal date to later in January.
Save your company or organization time as a major time waster occurs each year with December reserve reviews on a January 1 renewal date. You are wasting your time unless you are planning six months ahead.
The Unit Statistical Date occurs when your Total Incurred (paid + work comp reserves) pegs to your Experience Mod. This happens 6 months after policy expiration, not upon policy expiry.

A January 1st renewal date usually guarantees a Unit Statistical Date of July 1st. On June 30th at midnight, your company has what it has for Total Incurred, with very few exceptions. Most companies receive their new E-Mod (X-Mod) 90 – 120 days after the Unit Statistical Date directly from the Rating Bureau or from their agent/broker.
One should study the E-Mod or X-Mod Rating Sheets very closely upon receipt as the Total Incurred figures are included in those sheets.
The Work Comp reserves should be negotiated with the insurance carrier before the Unit Statistical Date if possible. At the close of business today, all policies with a January 1, 2017 renewal date will have their 2017 E-Mod pegged by the respective reserves.
Have you looked over your loss runs? If not, it is never too late to start analyzing your Paid, Reserves, and Total Incurred for each claim. Monitoring work comp reserves can be time consuming yet well worth the effort.
Also Read: What Is A Guaranteed Cost Program In Workers Compensation?
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