LCMs – Loss Cost Multipliers – An Important Example
LCMs (Loss Cost Multipliers) have many definitions. The main one that I refer to when asked for a definition is:
LCMs are basically the insurance carrier’s deviation from the advisory loss costs that are published by NCCI or your state’s rating bureau.
I recently received a message from the North Carolina Rating Bureau that referred me to a list of the LCMs. Let us look at what the list looks like for 2020 in North Carolina.
Even though North Carolina is an independent rating bureau, the concept is still the same. Please note this is public information – nothing in the following list is behind a paywall.
The list is much too long to include all carriers in the spreadsheet. Look at the heading and data that is in red. Yes, those are live and effective LCMs.
| COMPANY NAME | COMPANY EFFECTIVE DATE | LOSS COST MULTIPLIER | APPLICABLE TO ALL CLASS CODES |
| ACADIA INSURANCE COMPANY | 8/1/19 | 1.7100 | Yes |
| Accident Fund General Insurance Company | 4/1/20 | 1.9500 | Yes |
| ACCIDENT FUND INSURANCE COMPANY OF AMERICA | 4/1/20 | 1.3800 | Yes |
| Accident Fund National Insurance Company | 4/1/20 | 1.4700 | Yes |
| Accredited Surety & Casualty Company Inc | 4/15/20 | 1.4600 | Yes |
| ACE AMERICAN INSURANCE COMPANY | 4/1/20 | 1.2500 | Yes |
| ACE FIRE UNDERWRITERS INSURANCE COMPANY | 4/1/20 | 1.0630 | Yes |
| ACE PROPERTY AND CASUALTY INSURANCE COMPANY | 4/1/20 | 2.0900 | Yes |
| ACIG Insurance Company | 4/1/18 | 1.2700 | Yes |
| ADVANTAGE WORKERS COMPENSATION INSURANCE COMPANY | 5/1/16 | 1.5810 | No* |
| AIG ASSURANCE COMPANY | 4/1/20 | 1.1870 | Yes |
| AIG PROPERTY CASUALTY COMPANY | 4/1/20 | 1.7010 | Yes |
| AIMCO MUTUAL INSURANCE COMPANY | 3/1/06 | 1.3300 | Yes |
| AIU INSURANCE COMPANY | 4/1/20 | 1.0280 | Yes |
| Alea North America Insurance Company | 4/14/05 | 1.4900 | Yes |
| ALL AMERICA INSURANCE COMPANY | 4/1/09 | 1.6910 | Yes |
| Allianz Global Risks US Insurance Company | 3/1/97 | 1.3310 | Yes |
| ALLIED EASTERN INDEMNITY COMPANY | 4/1/20 | 2.0000 | Yes |
| ALLIED PROPERTY AND CASUALTY INSURANCE COMPANY | 4/1/20 | 2.5270 | Yes |
| ALLMERICA FINANCIAL ALLIANCE INSURANCE COMPANY | 4/1/2018 | 1.8500 | Yes |
| ALLMERICA FINANCIAL BENEFIT INSURANCE COMPANY | 4/1/2018 | 1.0500 | No* |
| AMCO INSURANCE COMPANY | 4/1/20 | 2.0460 | Yes |
| AMERICAN ALTERNATIVE INSURANCE CORPORATION | 4/1/10 | 1.5640 | Yes |
| American Automobile Insurance Company | 4/1/20 | 1.6470 | Yes |
| American Builders Insurance Company | 6/1/18 | 1.6000 | Yes |
| AMERICAN BUSINESS & MERCANTILE INSURANCE MUTUAL, INC. | 4/1/18 | 2.5010 | Yes |
| AMERICAN CASUALTY COMPANY OF READING, PENNSYLVANIA | 4/1/20 | 1.2750 | Yes |
| AMERICAN COMPENSATION INSURANCE COMPANY | 4/1/19 | 2.1500 | Yes |
| AMERICAN ECONOMY INSURANCE COMPANY | 8/1/17 | 1.6400 | Yes |
| AMERICAN FIRE AND CASUALTY COMPANY | 4/1/18 | 1.6790 | Yes |
| AMERICAN GUARANTEE AND LIABILITY INSURANCE COMPANY | 4/1/09 | 1.3290 | Yes |
| AMERICAN HOME ASSURANCE COMPANY | 4/1/20 | 1.4630 | Yes |
| American Interstate Insurance Company | 9/1/13 | 1.6000 | Yes |
| American Liberty Insurance Company | 4/1/20 | 1.4500 | Yes |
| AMERICAN MINING INSURANCE COMPANY | 4/1/15 | 1.4200 | Yes |
| American Property Insurance Company | 2/28/00 | 1.3000 | Yes |
| American Safety Casualty Insurance Company | 9/1/03 | 1.4800 | Yes |
| American Select Insurance Company | 10/18/20 | 2.3830 | No* |
| AMERICAN STATES INSURANCE COMPANY | 8/1/17 | 1.7120 | Yes |
| AMERICAN ZURICH INSURANCE COMPANY | 4/1/09 | 1.0950 | Yes |
| AMERISURE INSURANCE COMPANY | 4/1/20 | 1.6500 | Yes |
| AMERISURE MUTUAL INSURANCE COMPANY (a stock company) | 4/1/20 | 2.2000 | Yes |
| AMERISURE PARTNERS INSURANCE COMPANY | 4/1/20 | 1.0500 | Yes |
| Amfed Casualty Insurance Company | 4/1/19 | 1.7500 | Yes |
| AmFed National Insurance Company | 5/1/18 | 1.3200 | Yes |
| AMGUARD INSURANCE COMPANY | 4/1/20 | 1.6600 | Yes |
| AMTRUST INSURANCE COMPANY OF KANSAS, INC. | 12/1/15 | 1.0500 | Yes |
| Ansur America Insurance Company | 4/1/20 | 1.3400 | Yes |
| ARCH INDEMNITY INSURANCE COMPANY | 5/15/18 | 1.1820 | Yes |
| ARCH INSURANCE COMPANY | 3/1/04 | 1.4240 | Yes |
| Arch Property Casualty Insurance Company | 4/1/20 | 1.7800 | Yes |
| ARGONAUT GREAT CENTRAL INSURANCE COMPANY | 5/19/10 | 1.4500 | Yes |
| ARGONAUT INSURANCE COMPANY | 5/19/10 | 1.7400 | Yes |
| ARGONAUT-MIDWEST INSURANCE COMPANY | 5/19/10 | 1.1600 | Yes |
| Arrowood Indemnity Company | 4/1/03 | 1.2600 | Yes |
| ASHMERE INSURANCE COMPANY | 2/1/17 | 1.4000 | Yes |
| Associated Indemnity Corporation | 4/1/16 | 1.9690 | Yes |
| Association Casualty Insurance Company | 6/1/07 | 0.9980 | Yes |
| ASSURANCE COMPANY OF AMERICA | 4/1/09 | 1.5640 | Yes |
| Atlanta International Insurance Company | 4/1/17 | 1.9500 | yes |
| Atlantic Specialty Insurance Company | 4/1/19 | 1.3460 | Yes |
| ATLANTIC STATES INSURANCE COMPANY | 9/1/19 | 1.4500 | Yes |
| Auto-Owners Insurance Company | 9/10/19 | 1.9500 | No* |
As you can see, each company has its own LCM. Please do not think of this as a list of which company charges the least. Many more variables go into your Workers Comp policy such as discounts, Schedule Credits, etc.
The companies that have the No* in the last column will have LCMs for different Classification Codes. Check here for more information on specific filing searches.
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