On October 30, 2013, the National Council on Compensation Insurance (NCCI) delivered a workers compensation voluntary market loss cost filing to the Nebraska Department of Insurance. Based upon its review of the most recently available data, NCCI has proposed an overall average voluntary market workers compensation loss cost level change of -4.8%, to become effective February 1, 2014.
Loss Cost Filing Components Impact
Change in Experience & Trend
-2.9%
Change in Benefits
+0.2%
Change in Loss Based Expense Provision
-0.2%
Factor to Reflect Inclusion of Assigned Risk Experience
-2.0%
Overall Loss Cost Level Change
-4.8%
The key drivers of this year’s proposed filing are:
1. Experience & Trend
The experience used in this filing (policy years 2010-2011) reflects an improvement in overall loss experience in Nebraska. Claim frequency continues to decline.
Selected trend factors were equal to those in last year’s filing.
To maintain overall stability, NCCI continues to rely on an average of paid loss and paid loss plus case reserve experience in this filing.
2. Loss Cost Offset for Assigned Risk Market
The loss cost change includes an offset of -2.0% to reflect an assumed assigned risk market share and loss ratio relativity to statewide experience.
