The National Council on Compensation Insurance is making changes to their rating plan that will take effect for Michigan on January 1st, 2013. These changes could have a significant effect on policy holders as the new calculation is applied to your policy.
The NCCI’s changes to the Experience Rating Plan relate to how your loss experience will effect your premiums. Workers Compensation policies use a “split point” system to give heavier weight to the frequency of losses rather than severity. In essence, losses have been capped to keep larger claims from impacting your premium. This change will double the maximum loss value threshold for the impact of a single claim to your workers compensation policy and will work retroactively on your current history.
Due to inflation these adjustments to the threshold should have taken place every couple years but the NCCI has decided to make one significant change to make the correction. The last time these factors were changed was 1991.
If your Workers Compensation policy has had any claims over the past 5 years you may see an increase to your premium. Did your agent discuss the impacts that unmanaged claims have on your premiums? If you would like to learn more about these changes and discuss the tools that you can use to avoid having them affect your business moving forward please contact us 248-853-0930.
One of our Producers was nominated for the honor of being profiled for a regular column highlighting top producers in Commercial Property and Casualty insurance from across the country. The following link tells the story of our very own Chris Beardslee describing his path to insurance and what you can expect if you choose to work with him.
We hope you enjoy this article and look forward to having more members of the Allied Team highlighted in the future.
PropertyCasualty360.com is a resource where buyers and sellers to have access to breaking insurance news, industry research, compliance and legal updates, training and education, technology developments, data and trends, and more. Since 1897, the magazine has been an essential and trusted resource for P&C professionals.