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Reserve Review Schedule – Are You Behind Or Ahead?


Reserve Review Schedule – Important Upcoming Date For January 1 Renewals

A reserve review schedule can save many headaches if your company has a January 1 renewal.   January 1 remains the most popular date for renewals by far.

Vector Graphic reserve review schedule important date calendar
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July 1st is the second most popular date.  Most governmental entities renew on July 1st.   Some governmental units have moved their renewals to January 1 over the past few years.

A few years ago, I published a set of articles centering on a reserve review timetable.   I wrote a summary of the reserve timetable articles due to a few emailed requests.

The formulas are:

  • Time to Begin Reserve Review = Unit Stat Date – 90 days (at a minimum) or policy renewal date + 90 days
  • Unit Stat Date = 180 days (6 months) after policy renewal

The rating bureaus (NCCI, WCIRB, etc.) allow the extra six months for full claim reserve  development.  Remember that Total Incurred = Paid + Reserves.   The total incurred figures will be reported to the rating bureaus.

Your target date to start a reserve review is usually three months after renewal.  For January 1st renewals you are running 45+ days behind schedule.  The upcoming Unit Statistical Date  (Unit Stat Date) remains ever important.    Your reserves for claims from the last three to four years peg to your Experience Mod on that date.

Claims departments usually review your reserves for reduction at closing.   One phone call or email will not suffice for a good reserve review.    Obtaining a full loss run just after renewal and starting then will give you a full six months to track, review, and if needed, negotiate reserves.

The recommended best method involves a year-round loss run reserve review and communication with the claims adjusters (by email) on a regular basis.  Employers that begin a year-round review program are surprised when their reserves and eventually the E-Mod drops to an acceptable level.

There are many articles on how to do a loss run and reserve review in the articles I have written.  For  more info, you can click the Categories or Tags at the bottom of this article.  Also, use the search box at the top right to find more articles on starting a reserve review schedule.

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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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