January Policy Renewals – Time To Get Your Company On a Loss Run Review Schedule
Why am I recommending that January policy renewals start thinking about loss-run renewals now? I have written often on this topic in the past.
The way the Workers Comp experience rating system works requires a company’s Experience Mod calculation (promulgation) six months after a policy expires. Yes, just add six months onto your beginning policy date.
The UNISTAT Date for January policies is sometime in July.
Secret Date for January Policy Renewals
The secret date that I am referring to is the time it takes for your company to
- Review your claims loss runs – hopefully, your company has full online claims access
- Individually analyze each claim as to whether a claim should be closed or outstanding reserves reduced
- *** Pick the right claims to discuss. Some discussions could cause claim reserve increases (Ouch!)
- The larger the claim – the longer it takes for the carrier to review the claim – bigger reserves mean more desks to cross
Waiting until two weeks before the UNISTAT Date to start the process will only end up as an exercise in frustration.
Online claims access will always help in loss runs and reserve reviews. The claims adjuster will usually have a reason for the reserving and any recent increases.
A Quick Example
Let us go over an example I just experienced with a medium-sized company out of California. The company did not have a January policy renewal. The timing became critical.
The policy renewal date was April 1, 2024. J&L was contacted last week to see about performing a loss run and Experience Mod review. I informed the business owners that their Experience Mod for 2024 was calculated in October 2023. I helped them request a copy. Their Experience Mod had jumped due to numerous claims in late 2021. I said that J&L could assist starting July 1st for their next year’s Mod.
They were not too happy with the conversation.
Secret Formula For January Policy Renewals (Or Any Other Date)
Last Day To Start Workers Comp Loss Run Review = Policy Renewal Date – 9 months. Put this on your yearly calendar – even if you are self-insured. To help you remember, see the nine-month-old puppy pic below. If you are still confused or have further questions, you know where to reach us.
