Workers Comp Claim Development – Why The Six Month Delay?
The Workers Comp claim development process has frustrated more than a few insureds or agents.
Every time that I publish an article on how claims are reported and tabulated by the rating bureaus (NCCI, WCIRB, and others), the same question eventually pops up in the discussion.
Why do I have to wait an additional six months to receive my Experience Mod each year? The rating bureaus refer to the six-month delay as workers comp claim development.
How Workers Comp Claim Development Works
There are two steadfast rules in Workers Comp ratings.
- Your policy does not show up in your Experience Mod until the following year. Yes, the claim totals are delayed for one year. For example – your 01/01/2019 – 01/01/2020 policy will not affect your company’s Mod until 1/1/2021 – 1/1/2022.
- The very important UNIT STAT Date is 07/01/2020 – when the claim values peg to the NEXT year’s Mod. The reason for the six-month delay is called Workers Comp claim development.
NCCI and Other Rating Bureaus Faster Now On Mod Publishing
I often receive this question. Why do we have to wait four more months after the UNIT STAT date to receive our Mod? We would like to have it as soon as possible.
On the example above, the insured has to wait until 10/01/2020 to receive their Modification factor. Those were the old days as the rating bureaus publish Mods much faster now than in previous years.
Over the last two years, a positive trend has occurred with insureds and their agents receiving the Mods within 30 days after the UNIT STAT date.
In our example, the insured would likely receive the Experience Mod Sheets by 08/01/2020 or sooner.
The Reasons For Delays
Many times we receive emails or calls on Mods being delayed – why do delays occur?
- One of the states that report to the rating bureau may not have published their final state rating data
- A carrier may have not reported all the data required to finalize the Mod
- Your company may not qualify for a Mod due to premium level
- The UNIT STAT data is due 60 days after the UNIT STAT date. Most carriers presently report the data almost instantaneously – within the first week after the UNIT STAT date.
The fix – call the rating bureau or contact me to see if J&L can assist you. We also can estimate your company’s Mod from your loss runs including the Workers Comp claim development.
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