August 26, 2015 - Actuarial Committee Update

Posted Date: September 04, 2015
    

Industry InformationNCCI Actuarial Committee

The Actuarial Committee met on Wednesday, August 26, 2015. The major topics covered at this meeting included:

  • Class Ratemaking Research–Accuracy Performance Testing (ACT-15-04)
    Performance tests under consideration to analyze the accuracy of alternative methodologies were reviewed.
  • Legislative Analysis–Post-Reform Study of Repackaged Drug Reforms (ACT-15-05)
    Staff presented post reform analysis for repackaged drugs in six states.
  • Underwriting—NCCI's Classification Inspection Program Update (ACT-15-06)
    NCCI conducts inspections in all NCCI states to ensure that the classification system is being used appropriately. Results observed in the past regarding the most reclassified class codes were shown.
  • NCCI Experience Rating Plan Methodology and Performance–Countrywide Off-Balance (ACT-15-07)
    The latest results for the average countrywide Experience Rating Plan off-balance were discussed.
  • NCCI-Filed Expense Provisions—Methodology and Results (ACT-15-08)
    The methodology and results from NCCI’s annual review of loss adjustment expense and other expense provisions were shared.
  • NCCI’s Internal Rate of Return Model for Ratemaking: 2015 Updates (ACT-15-09)
    An overview of the NCCI Internal Rate of Return Model and a description of the changes being implemented for the current 2015 ratemaking season were discussed.
  • Table of Insurance Charges (Table M) - Draft Retrospective Rating Survey (ACT-15-10)
    NCCI solicited feedback regarding its proposed draft survey questions. Carriers should contact Tom Daley at 561-893-3134 if they have additional feedback or questions.
  • Industry Results–Frequency and Severity Update (ACT-15-11)
    NCCI continually monitors changes in claim frequency, as well as average claim costs for both indemnity and medical. Results based on the latest available financial call data were presented.

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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August 26, 2015 Agenda (PDF)

  • Class Ratemaking Research–Accuracy Performance Testing (ACT-15-04)
  • Legislative Analysis–Post-Reform Study of Repackaged Drug Reforms (ACT-15-05)
  • Underwriting—NCCI's Classification Inspection Program Update (ACT-15-06)
  • NCCI Experience Rating Plan Methodology and Performance – Countrywide Off-Balance (ACT-15-07)

August 26, 2015 Minutes (PDF)

  • NCCI-Filed Expense Provisions—Methodology and Results (ACT-15-08)
  • NCCI’s Internal Rate of Return Model for Ratemaking: 2015 Updates (ACT-15-09)
  • Table of Insurance Charges (Table M)-Draft Retrospective Rating Survey (ACT-15-10)
  • Industry Results–Frequency and Severity Update (ACT-15-11)