Class Ratemaking for Workers Compensation: NCCI's New Methodology

This paper will describe the new methodology NCCI has developed, and reveal the research approach and analyses underlying the modifications NCCI will be implementing to several key class ratemaking components. The paper will discuss in detail how the traditional areas of class ratemaking were modified, namely loss development, limiting large claims and applying expected excess provisions, updating credibility standards, and the derivation of industry group differentials.