The WCIRB Mod Talk webinars are very informative and enlightening on the changes that are occurring with the new Variable Split points.
The WCIRB – Workers Compensation Insurance Rating Bureau- is the work comp rating bureau for California employers. They have always been (except one person) very nice, professional, and hospitable to me in all my dealings with the bureau.
The variable split points are now centered on Expected Loss Ratios. You can find the slides and webinar recordings for the WCRIB Mod Talk webinars here.
I had decided to listen to the Q&A part of the webinars very closely. As with most rating bureau webinars, the listener questions is where the “rubber meets the road.”
Please remember these are my individual notes, so I could have missed something or accidentally over-embellished a point. I listened to all the sessions yesterday.
The recordings were listened to once. I wanted the feel of the notes to be more “live”. No second pass was made at the recordings.
Questions and Answers
Please note these are raw notes from the WCIRB Mod Talk Q&A sessions at the end of each webinar. The WCIRB Mod Talk presenters performed well overall.
- WCIRB sees company as small 10,000 to 15,000 premium Medium 50,000
- Extremely small company is not subject to rating plan less than $5,000 premium
- New Rating Calculator in June will not handle complex situations such as subrogation
- NCCI has pre-populated, not WCIRB
2015 Change- Limit to .25 swing due to one claim for companies with just one big l loss – still in effect
Simplify plan in future
- Current formula is complex 8 variable
- WCIRB not abandoning the 8 variable measure
- Eliminate credibility in future?
- Dramatic simplification in future
First Aid Issue
- WCIRB looking at First Aid issue
- Avoidance of reporting small claims
New Mod calculation – Increase potential to not report claims?
Why no phase in period (like NCCI)?
Most employers would see .02 change at most
Will handle all incoming questions by emails….. <<<WCIRB has laways answered every email or phone call from me.
Premium neutral plan? Yes.
April webinar –
Uncooperative employers for audits will have claims exposure calculated into the X-Mod without the offsetting payroll figures<<<ouch!!!
How does unaudited payroll affect the split point threshold – unaudited payroll
Will the 25% limit on one claim from a loss free rating still exist? 25% limit will not apply if uncooperative employer
If an employer is uncooperative for two years, how would that work? Only one year of payroll would be used out of three years
Insolvent insurers – What happens if there is no unit statistical report provided by insurer? No new changes
Time period used in X-Mod calculations- can smaller employers use longer experience periods to calculate X-Mod (5-8 Years?) Did not really make sense to do that
May webinar –
Simplified formula not in force on 2017 , possibly 2019 if no fine tuning needed to program
More clarity for 90 split points vs. 1 split point —90 D Ratios per Class Code
Are all class codes included not just governing class code? All class codes
Excess loss presently handled? Confusing answer ….
Experience is a zero sum game- most response to new variable split points have been positive
There will be some winners and losers in the new system
The X-Mod estimator may or may not be 100% accurate if the data input is off
99% accuracy on the X-Mod estimator
The estimator requires group of claims of 5,000 or greater be broken into individual claims, best to list all claims individually
Questions came in that the estimator was not working correctly(?)
September Webinar was postponed.
The WCIRB Mod talks are easily accessible online. If you have any CA WC companies or interests, it may be worth the three hours to listen to the webinars. If not, the slides are there as a quick-look at the upcoming changes.
Article provided by James Moore, AIC, MBA, ChFC, ARM. All articles are original content. Check out the full website at www.cutcompcosts.com