National Council on Compensation Insurance

Hendershot, D., Smaller Is Safer—Simplifying Chemical Plant Safety, Safe Workplace, National Council on Compensation Insurance, 750 Park of Commerce Drive, Boca Raton, FL 33487,2000. Hendershot is a senior technical fellow in the Process Hazard Assessment Department of the Rohm and Haas Company, Bristol, PA, and has written extensively on Process Safety. 

The workers compensation experience modification rating system is based on actuarial science. In an undated publication titled The ABC S of Experience Rating issued by the National Council on Compensation Insurance, these statements appear. 

The ABC of Experience Rating. New York National Council on Compensation Insurance, undated. 

The National Council on Compensation Insurance (NCCI), an actuarial organization, sets basic premium rates for most states. NCCI adjusts rates to keep up with changes in compensation laws. Each state has its own rate table or book. 

National Association of Workers Compensation Judiciary (NAWCJ) National Council of Self-Insurers (NCSI) - Workers compensation National Council on Compensation Insurance (NCCI Holdings) Self-Insurance Guaranty Funds of America (SIGFA) - Workers compensation... 

Interstate Experience Rating A multi-state experience rating program developed by the National Council on Compensation Insurance for employers with multistate operations. The experience of all the states is combined to determine the employer s experience modification. 

One such method for determining workers compensation premiums is through the use of the experience modification rating (EMR). The EMR is determined by the National Council on Compensation Insurance (NCCI) or other insurance rating groups. The EMR system rates companies based upon the type of work they are engaged in and their past loss history. Using actuary science, the insurer estimates what a firm s losses should have been over a period of time and compares them to their actual losses (Adams 1997,33). 

Statistics given here on serious injury trending over the last several years derive from macro studies, or may relate to specific industries. But, it must be understood, as my studies have shown, that serious injury experience varies greatly by industry. Data on serious injuries and workers compensation claims costs have been extracted from two primary sources the Bureau of Labor Statistics (BLS) in the U.S. Department of Labor and the National Council on Compensation Insurance (NCCI). 

Mealy, Dennis. State of the Line. National Council on Compensation Insurance News Bulletin, 2005 and 2006. http //www.ncci.com. 

A large majority of organizations do not have fatalities, but they may have serious injuries. As will be shown later in this chapter, data derived from analyses of serious injuries may be influential in focusing attention on incidents that have fatality potential. For example, the 2009 State of the Line Report (Mealy,2005,2006,2009) issued by the National Council on Compensation Insurance shows that injury frequenqr had declined consistently for all injury types—except for permanent total disabilities—cases that should be analyzed for the predictive data that might be produced. Surely, the best interests of employees and employers are served if improvement is made in the reduction of both serious injuries and fatalities. 

A 2005 National Council on Compensation Insurance (NCCI) research brief titled Workers Compensation Claim Frequency down Again (2005), states that there has been a larger decline in the frequency of smaller lost-time claims than in the frequency of larger lost-time claims. That runs contrary to the Heinrichean premise that achieving frequency reduction will produce an equivalent reduction in serious injuries. 

Data on the trending of serious injuries and workers compensation claims contradict the premise that focusing on incident frequency reduction will achieve equivalent severity reduction. The following data have been extracted from publications of the National Council on Compensation Insurance (NCCI). A July 2009 NCCI bulletin is titled Workers Compensation Claim Frequency Continues Its Decline in 2008. The reduction was 4.0 percent. A May 2010 NCCI report says that the cumulative reduction in claims frequency from 1991 through 2008 is 54.7 percent. 

NCCI. Workers Compensation Claim Frequency Continues Its Decline in 2008. National Council on Compensation Insurance, July 2009. Available at www.ncci.eom/Documents/WorkersComoensationClaimFrequency2008. pdf. 

For a detailed explanation of the experience rating system provided by the National Council on Compensation Insurance, Inc., go to http // www.ncci.com/Documents/ABCs Exp Rating 2012.pdf That will bring up a downloadable booklet titled ABCs of Experience Rating—2012 Edition. Excerpts from that publication, duplicated with permission, follow. 

Given that motor vehicle accidents cause numerous injuries and fatalities, it is essential that companies examine the various costs associated with them. The 1999 Annual Statistical Bulletin by the National Council on Compensation Insurance Inc. (NCCI) reported that the national average workers compensation cost per workplace fatality was 167,847. Other studies have shown that the total costs of such fatalities, including lost lifetime earnings and productivity as well as other direct and indirect costs, was 2.8 million per worker killed on the job. 

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