In this edition: Changes to the filing schedule will lead to earlier issuance of experience modifications next year
At its meeting last week, the WCIRB Governing Committee approved a recommendation to move the experience rating values that are necessary to calculate experience modifications from the pure premium rate filing, submitted in August, to the regulatory filing, submitted in June. This change will allow the WCIRB to publish January experience modifications much sooner.
Beginning with the January 1, 2016 Regulatory Filing, the WCIRB will file the expected loss rates, classification relativities and experience rating threshold as part of the regulatory filing, which is typically submitted to the CDI in June. As part of this change, the experience rating threshold for 2016 and beyond will be computed based on expected loss rates, rather than advisory pure premium rates as they are now. This change is not expected to materially impact the experience rating threshold or the number of experience rated employers.
Last year, the WCIRB issued first quarter 2014 experience modifications by November 27, 2013, within days of receiving the Insurance Commissioner's decision. In 2015, we expect to have first quarter 2016 experience modifications issued sometime in September. This is a significant innovation and one that will help policyholders, agents and brokers, and insurers as they prepare for January 1 policy renewals.