Employers with poor loss histories will pay even more for their workers comp coverage again in2015 as most states changed the way premiums are calculated starting in 2013.
But policyholders with proven risk management practices and safety programs that reduce workplace injuries will benefit from NCCI Holdings Inc.’s change in the methodology determining an individual employer’s experience modification factor, experts say.
2013 marked the first time in two decades that the rating organization has updated the “split point” used in its experience rating plan to more accurately reflect individual employer loss frequency and severity. An employer’s ex-mod factor has a significant affect on employer expenses because underwriters rely on them to adjust premiums with credits or debits.
via New NCCI methodology will change premium calculations | Business Insurance.