New Loss Costs
effective I/1/97, the National Council on Compensation Insurance (NCCI) has issued new
loss costs in Nebraska. These new loss costs represent an "average"
reduction of 10.8% from 1996. Keep in mind, this is an "average"
reduction.Some classes have increased:
Printing (#4299) is up 9%
Sign MFG & erection (#9552) is up 13%.
Some big reductions:
Auto Parts Store (#8046) down 28%
Cabinet Works (#281 2) down 19%
Outside Sales (#8742) down 17%
If you
want an idea on what your next renewal will look like! Call us and we can give you a quick
estimate. |
Lower Loss Cost Factors
As you know, under the new system in Nebraska, each insurance company files their
own loss cost factors to be applied to the above loss costs (this is their markup for
expenses and profits). Many companies are lowering this markup as well. The
most competitive companies have filed factors of 3.5% to 9%. In 1996, these were in the
6.5% to 15% range. Therefore, Nebraska employers will see a double discount from 1996
pricing (loss costs & factors). |
Dividend Plans Abound Employers with a good loss history, safety program, and experience
modifiers less than 1.00 should have little problem in getting a dividend plan endorsed to
their work comp policy in 1997. A dividend plan allows the insured to share in the
profits of the insurance company. Depending on the size of your premium, these plans
can return up to 15-20% or more if you keep your claims low.
Managed Care
Some insurance companies are doing an excellent job and
others are seeing the benefit of managing claims and reducing their ultimate costs.
This will benefit your future premiums by impacting your experience modifier and your
potential dividends. When choosing your insurance carrier, consideration should be
given to their expertise in managed care. Call us for more specific information.
Experience Modification Worksheets
The NCCI is now sending these worksheets directly to you,
the employer. You should receive this information about 3o days prior to your
renewal. This is useful info and should be reviewed for accuracy. In addition,
the NCCI sends along a release letter for employers to authorize the NCCI to share this
information with anyone who requests. it. We strongly recommend that employers
do not sign this release. These worksheets contain confidential information
regarding your payrolls and claim history. If needed, you can approve release of
this information as needed. |
