The NCCI Class Codes Have Changed Little Due To The New Procedures

This was a great question from one of my blog readers. There has been so much news concerning the statistical changes that NCCI (the big Workers Comp rating organization) has instituted over the last few weeks. I actually read the voluminous actuarial paper the changes were based on for the most part.

I have seen quite a few articles, even some from actuaries that miss the mark. I saw one analyzing the D and ELR codes. Those will be minor compared to some of the other changes that I am not sure NCCI thought through or consulted with a claims person before the new rules were issued. I am not going to go into the changes too far. One thing for sure is that now any audits performed for employers will also require someone with a claims background. As the NCCI is a quasi-private organization, I will not talk about the procedures until after 10/01/09 when they will be in effect.

The answer to the question is - no - the recent changes will not change the NCCI class codes. However, the NCCI has been quietly instituting numerous classification code changes for about 5 years. Some of the changes have been major. Are the class code changes detrimental to employers? That remains to be seen in the next few years.