Boca Raton, FL – This year represents a significant milestone in the history of the workers compensation system—the 100th Anniversary of the National Council on Compensation Insurance (NCCI). As NCCI celebrates 100 years of excellence, it has released a new Insights article reflecting on how workers’ comp ratemaking has changed over the past century and impacts on key ratemaking components
In 1923, NCCI provided services for 69 WC insurers. Today, that number is nearly 900. The WC system has continually adapted to the changing environment, including states updating the name from workmen’s compensation to workers compensation.
While the challenges currently facing the WC system may seem unique, the themes are quite reminiscent of historical challenges the industry has faced—inflation, changing benefit levels, data availability, and catastrophic events. There is much to be learned from the past to help us navigate today’s challenges.
The new article highlights major changes over the years impacting key ratemaking components including:
- Ratemaking Data
- Exposure Base
- Experience Period
- Trends
- Cost Drivers
- Residual Market
- Classification
The article, “100 Years of Ratemaking” is authored by Carolyn Wise, Manager & Associate Actuary and Marisa Steinberg, Assistant Actuarial Analyst.
Read it here: NCCI: 100 Years of Ratemaking
Source: NCCI