WCIRB California launches new experience modification estimators

Workers’ compensation regulator prepares insurers for new policies with informational application

Workers Comp

By Allie Sanchez

The Workers’ Compensation Insurance Rating Bureau (WCIRB) of California is preparing insurers, agents and brokers for the move to the experience rating formula as it moves to split from fixed point plan in 2017.

As part of its preparations, the agency launched two experience modification estimators so carriers can understand how experience modifications are computed. Experience modifications will be the benchmark for claims, and will be implemented as an incentive to reduce accidents in the workplace.

Under the scheme, users can access the application to obtain estimated experience modification using the approved 2016 Experience Rating Plan values or the proposed 2017 Experience Rating Plan values by enrolling payroll, classification and claims information.

The estimators are Excel based so that they are easy to view and alter based on available spreadsheet data. The application is informational and results are merely estimates and not published experience modifications.

California is moving from its current $7,000 split point plan to a variable split point plan ranging from $4,500 to $75,00 in 2017 to reduce volatility arising from large claims, increase actuarial accuracy of the employer’s policy, and make allowances for future plan simplification.
 

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