Claim Severity – Where One Claim Can Ruin Your Mod The Claim Severity vs. Frequency Effect can result from one claim. One severe claim cannot hurt your Mod as bad as a number of smaller claims. This is one of the misnomers that exists today in Worker Compensation insurance
Self Insureds Need To Monitor Excess or Reinsurer Notification Do you know if your self insureds has been notified? Workers Compensation excess insurance (reinsurance) can often go unnoticed in all the inner workings as a file progresses towards its conclusion. A reinsurer denying coverage because they were never put
Workers Comp Reserving Is An Art Should Workers Comp reserving be compared to a Picasso? One of the most difficult tasks that Workers Comp adjusters face (especially inexperienced ones) is setting the reserves on a file. A large number of people seem to think the reserves are just automatically calculated
Very Important Workers Comp Dates One of the most important Workers Comp dates is upcoming. Timing is everything with reducing your Workers Comp claims and premiums. There are a few upcoming dates that are very important for Workers Comp polices in the regular market. If your company has a
Important Upcoming Date For January 1 Policies Renewal Over the last few months, I had been covering a plan on how to reduce E-Mods. The important upcoming date for January 1 renewals is your Unit Stat date. The Total Incurred (Paid + Reserves) is tallied six months after your policy
Total Incurred Means Two Different Things In Two Different Places The Total Incurred part of claims reserves consists of the indemnity reserve added to medical reserves for reporting to the rate bureaus. The figure does not include ALAE better known as an allocated expense. Distinguishing expenses from medical incurred is
Total Incurred Value Most Important Number The total incurred value is one of the more confusing areas of Workers Compensation. The terms are different on almost every insurance carrier’s loss runs. The term Total Incurred is the sum of the funds Spent added to the Reserves. In other words:
The Total Incurred Formula Generates Premium Base The total incurred formula involves three distinct terms. When I am making a presentation or when I receive email questions about my posts, one of the areas that is often mentioned is the formula on the parts of a Workers Compensation claim.
Total Incurred Definition Has Two Variables The Total Incurred definition is the funds that have already been paid out + the Reserves on the file. The E-Mod is calculated using Total Incurred as one of the main items. The Paid part can rarely be adjusted. The Reserves, however, can be
Main Workers Comp Question At Presentations and Meetings A great Workers Comp Question was asked by one of our blog readers. This is a question that we are asked quite often at presentations and at client meetings. What is the difference between paid, total incurred, and reserves on our Work
Workers Compensation Budget Comes From One Group Who is in charge of your Workers Compensation budget that is 100% unregulated? Is it your agent, underwriter, premium auditor, or insurance commissioner? No, not any one of those parties, as they are all under some type of regulation. The unregulated part of
