NCCI经验修改因子2024变更常见问题

The National Council on Compensation Insurance (NCCI) is making alterations to its experience modification factor for 2024. These changes are slated to go into effect on each state’s regular filing date on or after Nov. 1, 2023.

This 工作对比 provides the NCCI’s answers to frequently asked questions (FAQs) concerning the new changes. 

一般常见问题

什么在改变??

The formulas and general structure of the Experience Rating Plan (Plan) remain unchanged. 某些底层组件将受到影响:

• 初始/超额损失分岔点(分岔点)
• State per claim accident limitation (SAL) and United States Longshore and Harbor Workers’ Compensation (USL&每次索赔事故限制
• G值
• Credibility parameters underlying calculation of the weight (W) and ballast (B) values
  
• 贴现率(d -ratio)

E-1049项的修改建议什么时候生效?

This item will become effective for experience rating modifications with rating effective dates on and after each state’s anticipated loss cost/rate filing, 哪些在2024年普遍生效. 具体的州评级生效日期从11月6日开始. 2023年1月1日至8月1日. 2024年1月1日，最常见的生效日期是1月15日. 1, 2024.

为什么现在提出这些改变?

NCCI定期评估计划方法和绩效. 在最近一次审查期间, NCCI确定了一些改善计划绩效的机会, 这些修订将导致:

• 一个更准确和预测的体验评级修改
• Experience rating modifications that reflect a more equitable determination of primary and excess losses across states with varying cost levels
• More comparable Plan performance in states with claim costs that vary significantly from the countrywide average
• Experience rating modifications that are less sensitive to large outlier claims without sacrificing predictive accuracy
• More consistent calculation of each employer’s expected claim count, which is expected to result in more appropriate credibility being assigned to each employer’s loss experience.
• Recalibrated credibility parameters underlying the weight and ballast values to increase equity across employers
• 消除没有附加值的复杂计算

要归档的项目在哪里?

项目E-1409已在所有NCCI州(包括AK州)归档, AL, AR, AZ, CO, CT, DC, FL, GA, HI, IA, ID, IL, KS, KY, LA, MD, ME, MO, MS, MT, NE, NH, NM, NV, OK, OR, RI, SC, SD, TN, TX, UT, VA, VT和WV). It will be recommended to the following independent bureau states for their consideration: IN, MA, MN, NC和WI.

这些改动对保费有何影响?

预计这些变化总体上是保费中性的. The overall average experience rating modification in each state is not expected to be impacted by these changes. Initial fluctuations at the individual employer level may be offset by changes in loss experience and routine updates to rating values. 最终, this update to the Plan is expected to result in overall improved performance of the Plan and increased equity across individual employers.

Are these changes expected to move experience rating modifications further from unity (1.00)?

For any given employer, the experience rating modification may increase, decrease or stay the same. 整体, the proposed changes to the experience rating modification calculation are expected to produce Plan performance that is both improved and more comparable across states.

Do these changes affect the participation of independent bureaus that participate in interstate experience rating? 

No. All of the proposed changes fit within the existing Plan framework (that is, 一个全州范围的分界点). Interstate experience rating will continue without disruption regardless of whether other bureaus decide to adopt similar changes to their own experience rating values and methodologies

额定值变化

什么是分界点?

The primary/excess loss split point divides the losses from each historical claim into two layers: primary losses (those beneath the split point) and excess losses (those above the split point).

例如, 如果分界点是15美元,000, 索赔总额为50美元,000人将捐助15美元,000给初级层，35美元,000到多余的图层. Primary losses receive a greater weight than excess losses in the experience rating modification formula. Because of this, primary losses have a greater impact on the experience rating modification.

分界点目前是全国范围内的价值(18美元),500) that is updated with each state’s annual loss cost/rate filing to reflect changes in countrywide claim costs.

分裂点是如何变化的?

A key improvement of the proposed Plan changes is increased recognition of differences in state cost levels through a state-specific split point. 根据现行计划, the split point is based on a common level and does not vary across NCCI states.

例如, 而不是现在的18美元,500人申请到所有州, 在拟议计划下, a state with higher-than-average claim severity may have a split point value of $25,000, while a state with lower-than-average claim severity may have a split point value of $15,000.

特定于状态的分裂点的好处是什么?

When NCCI evaluated the performance of the current Plan across various states, it became apparent that additional recognition of state severity differences was an opportunity for improvement.

The use of state-specific split point values that reflect individual state cost differences is intended to better align across states the weight given to actual employer loss experience in the experience rating modification calculation. 反过来, this is expected to produce improved and more comparable Plan performance in states with claim costs that vary significantly from the countrywide average.

新的分点值是否会每年继续更新?

是的. To keep up with changes in claim costs and preserve alignment with other experience rating parameters, it is anticipated that the split point value will be indexed concurrently with each state’s annual loss cost/rate filing. This is consistent with all other rating values used in the calculation of the experience rating modification.

什么是每项索赔事故限制(SAL) ??

The SAL is the maximum dollar amount from any one claim that may impact the experience rating modification. 例如, 如果SAL是200美元,000, then any claims with incurred losses above that amount would be limited to $200,000 for the purpose of calculating the experience rating modification. Currently, the SAL is calculated as the state average cost per case times 25. The SAL can also be derived at 10% times the state reference point (SRP), where SRP is calculated as the state average cost per case times 250.

The SAL is intended to curtail the impact that extremely large outlier claims have on the experience rating modification because these dollars are not expected to be predictive of future loss experience beyond a certain point.

SAL是如何变化的?

The SAL will be calculated using the 95th percentile of lost-time claims for each state. This new methodology is expected to result in lower limits in all states, making the experience rating modifications less sensitive to large outlier claims without sacrificing predictive accuracy.

Why is it desirable to have the SAL be more consistent across states while the split point is being proposed to vary by state?

简而言之，这些值有不同的用途. The SAL is used to curtail the impact of large claims on the experience rating modification because large outlier claims are generally not expected to be predictive of future loss experience. The use of a state-level 95th percentile results in an SAL that is expected to impact the largest 5% of loss-time claims. 另一方面, the split point is meant to segment the dollars associated with each claim into primary and excess layers—dollars beneath the split point enter the primary layer, 而分裂点以上的则属于多余层. The proposed split points are established so that they result in approximately the same share of total loss dollars being allocated to the primary layer across states. In this sense, the updated split points are more consistent across states as well.

Are there any changes to the other single-claim or multiple-claim limitations?

USL的&HW per claim accident limitation is being updated to reflect the 95th percentile of lost-time claims belonging to F classifications. 类似于SAL的变化, this new methodology is expected to result in a limitation that is more stable over time.

The state multiple-claim accident limitation will continue to be calculated as twice the corresponding per claim accident limitation. The disease loss limitation will continue to be calculated using a multiple of the approved per claim accident limitation as detailed in the Plan.

目前没有其他事故限制发生变化.

G值是多少?

The G值 represents state average claim severity (in thousands of dollars). Its primary use is in the determination of an employer’s expected claim count, which serves as the basis for the credibility assigned to its primary and excess loss experience. The G值 is updated with each state’s annual loss cost/rate filing.

G值是如何变化的?

The calculation of G will be revised to reflect accident limitations and the 70% reduction of medical-only losses (per the experience rating adjustment [ERA]), 在适用情况下.

在计算雇主的预期申索款额时, the employer’s expected losses are divided by the G值 (average claim severity). Because expected losses already reflect ERA and accident limitations, this change in how G is calculated makes for a more consistent calculation of each employer’s expected claim count. 反过来, this is expected to result in more appropriate credibility being assigned to each employer’s loss experience.

可信度参数是什么?

The W and B values influence the degree to which an employer’s actual losses impact the experience rating modification. The W and B values are determined by a set of 10 credibility parameters, 这些参数在二十多年里没有更新过.

可信度参数是如何变化的?

The proposed credibility parameters underlying the W and B values have been recalibrated to increase equity across employers.

保费资格的门槛是多少? 

有资格获得经验评级, an employer’s subject premium must meet or exceed the state’s minimum eligibility amount. This Plan update proposes no change to the current premium eligibility threshold indexing methodology.

This 工作对比 is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice. 设计©2023 Zywave, Inc. 版权所有.