Workers Comp Audit Stress Reducer
Use It For Your Next Premium Audit

Workers Compensation Rating System – See You in 18 Months


The Workers Compensation Rating System And Insurance Press – Different Timetables

The Workers Compensation Rating System was built as a delayed system.   Why was that statement the first sentence in the article?

Picture of 18 months workers compensation rating system
Wikimedia Common License – Claude Covo-Farchi

The Workers Compensation rating system cannot provide immediate data analysis.   NCCI, WCIRB, and the other state rating bureaus allow for a term called claims development.

Claims departments do not review their claims weekly to see if the reserves are correct.   See this article on how adjusters work their claims.

Any data from a rating bureau may look stale or out of date.   The Workers Compensation rating system allows the claims in a certain policy to develop for an extra 18 months before the data is reported.

The UNISTAT date pegs the claim reserve data with the Total Incurred amounts 6 months after a policy ends.

A few articles are floating around in the press where the author seems astounded that the rating bureaus cannot provide immediate data reporting.    I have even caught myself asking the WCIRB for immediate results.

Two weeks ago the NCCI produced a great teleconference that substituted for their Annual Issues Symposium.   The lineup produced a great teleconference.    The total attendance (including me) topped out at 2600.   The platform NCCI used published the number of participants at the bottom of the screen.

NCCI could not answer this question and rightfully so – What are you seeing as far as COVID-related data?  That answer was a stretch for the presenters.

Of course, the press wants to break new stories – that is why they call it the news.   Press outlets want fresh data now.   Unfortunately, if one takes a look at any statistical study that is based on rating data, most of them right now show solid data for 2018 and projected data for 2019.  Why?  Because once again, the Workers Compensation rating system originates from older data.

Stopwatch workers compensation rating system on a palm

Let us use the date of the teleconference for the date a certain workers’ compensation policy ends.   The date of the conference was  May 12th.

Any COVID-19 related claims for a policy that ended  (not started) on May 12th would not be reported to NCCI by the carriers until November 12 2021 or later.

Many reports that I write for clients always contain when the claims from a certain policy will take effect.   I always receive questions on the timing of the data from new clients.

Feel free to search this blog for the UNISTAT date for more info.


©J&L Risk Management Inc Copyright Notice



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


Get the latest workers' comp news FREE!

This field is for validation purposes and should be left unchanged.