What Could Be The Upcoming NCCI Class Code Changes? ***

I had read quite a few of the reports coming out of the NCCI Annual Symposium. NCCI stands for National Council on Compensation Insurance. The company is based in Boca Raton, FL. NCCI is not a governmental entity. I also watched the videos that were posted from the NCCI annual symposium. The reports are not exciting reading. A shockwave may be sent through the Workers Compensation industry because of the possible modification of the NCCI Classification Codes.

Rating Bureau systems are all very similar from state to state and also to the Class Code based rating system from NCCI.

One of the reports indicated that the NCCI may use "type of injury" coding in their ratemaking formulas. It is not clear how this will change the Workers Compensation landscape. There is already a code for a type of claim that is a very benign variable as it changes nothing on the ratings.

All insurers have a fields or group of fields they input when setting up a Workers Comp claim. I am only surmising that the NCCI will pick up that data as part of their Workers Compensation Experience Rating.

I am not 100% sure on how this will affect the E-Mods produced by NCCI. I am also not sure if the type of injury will feed directly into the formulas or will just be a tracking field to get an overall "outside the numbers" sense of how an employer is doing with their safety and claims program.

***Due to popular demand, this is a repost of this information***