Is the WCIRB Becoming California’s NCCI?

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WCIRB Becoming California’s NCCI

The WCIRB Is slowly becoming California’s NCCI.

While attending a recent California Workers’ Compensation Insurance Rating Bureau (WCIRB – the rating bureau for California) conference, I started to notice that the WCIRB was adopting rules that were similar to Boca Raton’s NCCI. I thought I was possibly over-comparing the two agencies.

 
Businessman Talking in Conference Room WCIRB Blurry Picture
123RF

The rating bureau recently adjusted some of their rating values to more accurately reflect how a company’s safety program is functioning. The WCIRB performed an actuarial analysis to see how all of the companies in California would fare with the change. I thought I would compare their recent NCCI changes that occurred last year.

 
We should then be able to tell if the two bureaus are going to be more similar over time. 
 
The numbers are based on how the X-Mod would change for group of certain employers. The numbers as produced by the WCIRB were:
  • Approximately 65% of experience rated policyholders received a lower experience modification than would otherwise have been the case as a result of these formula changes.
  • Approximately 29% of policyholders received a higher experience modification and
  • Approximately 6% of the policyholders were unaffected by the 2010 formula changes.
  • Roughly 5% of experience rated policyholders saw increases of between 11 and 20 points in their experience modifications
  • Approximately 2% saw increases of more than 20 points. The small percentage of policyholders who experienced large increases were employers with worse than average underlying loss experience.
I will stop here as the NCCI comparison article is over 200 pages. I will add another post tomorrow.
 
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James Moore

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Mgmt 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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