Announcing the New Indemnity Data Call - Coming in Mid-2020

Posted Date: February 12, 2018
    
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Legislative pricing is a core responsibility of NCCI, and our ability to fulfill that role has been limited by the lack of sufficient indemnity claims data. That is going to change. In mid-2020, a new Indemnity Data Call will be implemented to meet this need—providing comprehensive indemnity claim information.

Developing a proposal for the new Indemnity Data Call was a yearlong effort that started with discussions with NCCI’s Board of Directors in early 2017. The Board directed NCCI to continue exploring the idea, and NCCI worked with the Actuarial Committee and Data Collection Procedures (DCP) Subcommittee and their appointed working groups to develop the new Indemnity Data Call proposal.

At the January 2018 NCCI Board of Directors meeting, the proposal was presented and discussed, and, after careful consideration, the Board voted to adopt the new Indemnity Data Call.

So, what does this mean for the industry? Details may be found in the Indemnity Data Call Announcement Circular (PDF), which includes the following highlights:

  • Reporting Time Frame—The Indemnity Data Call will begin with indemnity claim activity occurring in Second Quarter 2020, due to be reported to NCCI by the end of Third Quarter 2020. This 24–30 months of lead time was extensively discussed with the working group participants and in our extended NCCI affiliate outreach.
  • Reporting Frequency—Indemnity claims will be evaluated and submitted on a quarterly basis, and submissions will be due by the end of the following quarter (for example, third quarter claims/transactions would be due by the end of the fourth quarter).
  • Call Participation—For affiliate groups that are identified as required participants, letters will be sent to each company in March 2018. The participation threshold will be based on affiliate groups with at least 1% market share in any one NCCI state over the most recent three years (overall average = 1% or more), based on 2014–2016 premiums.
    • Note: These are the same participation requirements that were established for the Medical Data Call.
  • Indemnity Records—The Call will include two separate reporting records (Transactional Record and Quarterly Record). A majority of the data elements are currently reported in Detailed Claim Information and/or Unit Statistical. Circular IND-2018-01 (Attachment B) provides the details for each data element, including whether it is current or new.
  • Indemnity Data Call Section on ncci.com—In April 2018, a new Indemnity Data Call section will be added to the Data Reporting page on ncci.com. This will reside in the public domain so that all data reporters (including service providers such as TPAs) will have direct access to this information. This new Web page will feature the following two important resources:
    • Implementation Guide—The Indemnity Data Call Implementation Guide will be available and will include reporting requirements, flat-file record layouts, a data dictionary, coding values, and more.
    • Webinar on Demand—The initial Indemnity Data Call Webinar on Demand training module will be available in the Indemnity Data Call section on ncci.com. This will provide an overview of the new program’s features.
  • WCIO Workers Compensation Data Specifications Manual (WCIO Manual)—NCCI will work with the Workers Compensation Insurance Organizations (WCIO) to add the Indemnity Data Call reporting standard to the WCIO Manual. This will enable the reporting standards, record layouts, and coding values to be established and maintained on a going-forward basis as the industry standard for this new data type.

NCCI will continue to keep the industry informed about Indemnity Data Call information through the release of circulars via the new Indemnity Data Call “IND” series and with updates to the Indemnity Data Call section on ncci.com.