January 30, 2013 - Actuarial Committee Update

Posted Date: January 30, 2013
    

Industry InformationNCCI Actuarial Committee

The Actuarial Committee met on Wednesday, January 30, 2013. The major topics covered at this meeting included:

  • Class Ratemaking Update (ACT-13-06)
    Staff presented a review of various aspects of the new class ratemaking methodology across NCCI states. The presentation included a review of class stability, distributions of classes affected by swing limits and classes by size, as well as a review of industry group differentials.
  • Medical Fee Schedule Treatment in Ratemaking (ACT-13-07)
    Staff presented an analysis of NCCI's treatment of medical fee schedules in ratemaking, including a summary of current methods, simulations, test results, and conclusions.
  • Financial Call Expansion—Additional Link Ratios (ACT-13-08)
    Starting with the Financial Calls valued as of 12/31/2007, NCCI began collecting additional reports of paid and paid plus case loss experience beyond a 19th report. Staff presented an analysis of these additional link ratios.
  • Changes in Average Weekly Hours and Industry Mix: Impact on Frequency (ACT-13-09)
    Staff explained how changes in average weekly hours worked and the change in industry mix impacted the accident year frequency changes in 2010 and 2011.
  • NCCI Experience Rating Plan Methodology and Performance (ACT-13-10)
    Staff presented initial experience rating mod results following the implementation of Item E-1402.
  • NCCI Retrospective Rating Plan Methodology (ACT-13-11)
    Staff provided an update on the new excess loss factor methodology.
  • Industry Results (ACT-13-12)
    Staff presented the latest available information based on data valued as of 12/31/2011. The update included frequency and severity as well as calendar-accident year underwriting results.

Please refer to the minutes of the meeting for any pertinent discussion on each topic. The presentation for each of the listed topics is contained in either the agenda or the minutes for the meeting as indicated below.

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January 30, 2013 Agenda (PDF)

  • Class Ratemaking Update (ACT-13-06)
  • Medical Fee Schedule Treatment in Ratemaking (ACT-13-07)
  • Financial Call Expansion—Additional Link Ratios (ACT-13-08)
  • Changes in Average Weekly Hours and Industry Mix: Impact on Frequency (ACT-13-09)
  • NCCI Experience Rating Plan Methodology and Performance (ACT-13-10)
  • Industry Results (ACT-13-12)

January 30, 2013 Minutes (PDF)

  • Class Ratemaking Update (ACT-13-06)
  • NCCI Retrospective Rating Plan Methodology (ACT-13-11)