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Workers Comp Rate Setting Calculation – Short Informative Video


A Good Five-Minute Workers Comp Rate Setting Calculation Video

This workers comp rate-setting calculation video caught my eye last week.  The State of Washington’s L&I produced the video.

state of washington map workers comp rate setting calculation
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Washington is a Monopolistic State.  All employers operating in the state must buy insurance through a state agency.  I am not a huge fan of Monopolistic States.

States such as West Virginia and Nevada successfully converted from monopolistic funds to a competitive marketplace.  The results were always successful including a reduction in premiums.

Regardless, the video below is well worth the time.  All Workers Comp rating bureaus including NCCI (National) WCIRB (California) use the same concept for rate setting.


The Washington L&I website can be found here.  I have been in contact with the L&I over the years.  They have always been very helpful in locating information.



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2 Responses

  1. Does State Fund, Farmers State Farm, etc. have an employer input meeting to voice opinions?

    It seems that this video expresses the rule that the more money spent on employee insurance benefits raises the employer’s insurance premium.

    Informative video.

    Thank you.

  2. Richard, it is nice to hear from you again. I know of no employer input meetings with any of the Workers Comp insurance carriers. I know that some carriers have proxy meetings where investors can have some input.

    Yes, the more benefits that a carrier pays out will eventually (up to 2 years later) will eventually cause employers to pay more premiums.

    I wrote an article today on the fact that larger employers pay less per unit of benefits than a smaller employer – the inherent cost of risk.


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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