Commentary: Challenge to NCCI Rating Process Could be Significant for Florida

By Justin R. Parafinczuk | March 2, 2017

  • March 2, 2017 at 10:44 am
    dot hemath says:
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    ” The cost of large rate increases is spread around internally by insurance carriers, which affects the cost of all lines of insurance that they offer. ”

    Lost me here. Can someone explain this? What is he talking about? Overhead?

    He’s right to say that worker’s compensation insurance rates affect all Florida residents, not just businesses, but it’s because those businesses pass their increased WC costs through to their customers, who are ultimately Florida residents.

    • March 2, 2017 at 2:38 pm
      Agent says:
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      NCCI experience modifiers are also called into question. They changed methods of calculation and it almost always results in an increased modifier. Frequency used to be the norm for claims. Now, one claim with lost time often makes the modifier go wild.

  • March 2, 2017 at 2:40 pm
    TC says:
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    Really? The NCCI whole argument is that there was no committee? Talk about a contrived defense. the author makes a good point. Was the use of just one Actuary a planned move to avoid public scrutiny. It would be interesting to know the operational paradigm in the other states they rate. Are they also by a single actuary?

  • March 3, 2017 at 12:34 pm
    John says:
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    Was actuary Rosen’s work not peer reviewed by another NCCI actuary?



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