The 2010 Experience Rating plan changes

Yesterday, 04/13/10, I attended the WCIRB’s 2010 Experience Modification plan changes Seminar in Burbank.

This was a very informative two-hour seminar put on by Dave Bellusci, Senior VP and Chief Actuary of the Bureau, and one of his Senior Research Analysts.

I already knew the basics about the changes: Employers with Experience Modifications over 100 are likely to receive higher mods, and those under 100 will get lower mods.

But during the seminar I learned the following:

Ø      how the new benchmarks will work,

Ø      how the new Credibility values, (B and W values) will apply,

Ø      That the Expected loss values will reflect results from 20 Industry groups the bureau identified,

Ø      How the Rating forms themselves will undergo some helpful features, (including a loss-free rating number on Rating forms), starting in 2011.

All in all, it was very informative, and there was a lot more information.
If anyone reading this emails a question to me, I’ll be happy to research it to provide the best available answer. Here is a link to the WCIRB spotlight note about the changes: https://wcirbonline.org/wcirb/spotlight/spotlight_2009_11.html

In the meantime, Employers, do your best to “brace for impact”.
Focus on your fundamentals of claims management, injury prevention, and loss-control. These activities will serve you well because in the future it’s likely that your premium will increase.

Thank you,
Mike Vrchota