Is the WCIRB Becoming California's NCCI? - Workers Compensation Audit and Mod Reviews For Employers
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Dec 7, 2010

Is the WCIRB Becoming California's NCCI?

While attending a recent 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.

The WCIRB 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 CA would fare with the change. I thought I would compare their recent NCCI changes that occurred last year.

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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