In the Know

Posted Date: August 15, 2019

Available Now—Enhanced Unit Validation Editing Process

NCCI released an enhanced editing process for unit statistical validation edits, providing an easier and more efficient method for addressing data quality edits. By applying validation edits and current edits upon submission of data, the new method allows up-front quality checks to be performed immediately to verify the validity, accuracy, and completeness of data submitted by data providers.

The rollout of the enhancement included:

  • A New Validation feature and improved outstanding edit/validation view in the Unit Data Collection (UDC) tool
  • Expanded Unit Statistical Data Reports to identify suspect conditions
  • A revised Unit Statistical Edit and Validation Matrix

To learn specific functions within the Validation feature, view the latest “Show Me How” videos embedded in the UDC tool.

To learn about the recommended workflows for addressing validation edits and everything about the new Validation feature, view the Webinars on Demand available in the Learning Center on

NCCI Coordinates 2019 Workers Compensation Terrorism Data Reporting Initiatives on Behalf of the Industry

NCCI continues to provide industry leadership in terrorism data collection activities for the Federal Insurance Office (FIO) and the National Association of Insurance Commissioners (NAIC). NCCI coordinated with the independent state rating bureaus to fulfill the 2019 data calls on behalf of the workers compensation industry.

Learn more by reading NCCI Circulars FYI-DR-2019-01 and FYI-DR-2019-02.

Data Communications

NCCI released the following key communications on during the first half of 2019:


  • Future Implementation of New Policy Edit (Circular POLS-2019-01)—Provides a listing of new policy edits implemented at the end of March 2019
  • Policy Data Reporting—Reporting “If Any” Policies (Circular FYI-POLS-2019-01)—Provides clarification on reporting Policy data on an “if any” basis for both single state minimum premium policies and multistate policies

Pool Data

Future Rollout of the Pool Financial Data Collection Tool (Circular PD-2019-01)—Provides a preview of the new Pool Financial Data Collection (PFDC) tool.

Data Reporting Learning Opportunities

Webinars on Demand and “Show Me How” videos—These online training modules allow customers to access valuable training at their convenience.

Release Date
2nd QuarterUnit Data Collection—Validation Feature
2nd QuarterAddressing Unit Validation Suspect Conditions—Using the Validation Feature
2nd QuarterAddressing Unit Validation Suspect Conditions—Using the Submissions Results Report
Release Date
"Show Me How" Videos in the Unit Data Collection Tool
2nd QuarterShow Me How to Group Results
2nd QuarterShow Me How to Add an Explanation to Multiple Conditions
2nd QuarterShow Me How to Copy a Prior Explanation

Life Cycle: Experience Rating

The Purpose of Experience Rating

Experience Rating is a mandatory plan which applies to all employers that meet a state’s premium eligibility criteria as listed in Rule 2-A of NCCI’s Experience Rating Plan Manual for Workers Compensation and Employers Liability Insurance. NCCI computes the experience rating modifications (mods) for those qualifying employers.

Experience Rating is an integral part of the final cost of workers compensation and employers liability insurance. The purpose of experience rating is to individualize an employer’s premium and to provide an incentive to maintain a safe workplace. The Plan compares the total experience of individual employers with average employers in the same classification. The differences are reflected by an experience rating modification factor, which may result in an increase, a decrease, or no change in premium for an individual employer.

The workers compensation Policy data and Unit Statistical data play an important role in the life cycle of the calculation and distribution of the mods.

Policy Data


A policy is a contract of insurance between the employer (insured) and the carrier (insurer). Policy data is used to determine the Rating Effective Date (RED). NCCI uses the policy effective date and policy term, as well as the estimated subject premium from the employer’s current policy.

The Policy data is also used to link incoming policies to the employer’s prior policy information. The appropriate linking allows NCCI to see the complete history of the employer. Policy data is also used to monitor the timely submission of Unit Statistical data through the Unit Report Control (URC) program, which triggers when unit reports are expected. The experience rating calculation references the URC status to determine when it is appropriate to initiate a mod calculation.

Unit Statistical Data

Unit Statistical data is the audited exposure, premium, and loss information for each state on the policy, in accordance with NCCI’s Statistical Plan for Workers Compensation and Employers Liability Insurance (Statistical Plan). This data is used to determine whether an employer qualifies for experience rating.

Once the unit is submitted and enters NCCI’s systems, the system matches the unit to its corresponding policy. When the unit data is available, the experience rating calculation will gather all applicable unit information to begin the mod calculation.

The experience rating system automatically checks each calculation against a series of edits when a mod is promulgated. After the mod has been promulgated, it is distributed to carriers based on the current policy information received by NCCI for application in the premium calculation.

The cycle starts again with the issuance of the renewal policy.

For more information about experience rating, view our Webinars on Demand or Microlearning Videos in the Learning Center on