Today’s issue of WorkCompRecap features the release of a new Insights brief from NCCI on the effects COVID-19 may have on premium audits of employers and the resulting premium estimates.
While challenges auditors may have working in-person during a pandemic may first come to mind, also important are the accuracy and timeliness of the financial estimates carriers are required to make for the premium the audits generate. NCCI notes that with a recession currently underway, leaving the assumptions for estimations of Earned but Not Reported premium (EBNR) unchanged can be impactful. The brief presents the Great Recession as an example case, where many carriers had not updated their EBNR in 2008 or 2009, which then threw off frequency calculations, making them appear to jump by more than 10-points for 2010.
Find out more (including a link to the free brief!) by clicking here!