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Join the leadership conference led by expert Thomas Finwall on the transition of the split point and other actuarial updates in the insurance industry. Learn about ERA ratings, split point changes, and more. Stay informed and be prepared for the changing landscape of insurance.
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LEADERSHIP CONFERENCE Presented by: Thomas Finwall7/14/11
The split point will be increased from $5,000 to $15,000 over a 3-year transition period. • After the transition, the split point will be indexed for claim inflation in subsequent updates. • Filing for these changes will likely be made in 3rd quarter this year; an NCCI staff member told me that the effective date of the change will roll out, state by state, in the late 2012 – early 2013 time frame.
Alaska • Colorado • Georgia • Louisiana • Massachusetts • New York • Texas • Oregon • California • Delaware • Michigan • New Jersey • New York • Pennsylvania NCCI Monopolistic States States that don’t reduceMedical Only by .70 Non-NCCI States • North Dakota • Ohio • Washington • Wyoming
Terms ACTUARIAL LAYMAN’S Primary Excess Ratable Excess = = = Frequency Severity Mitigated Severity
VS Frequency Severity
VS Frequency Severity
VS Frequency Severity Primary Split Point to $1,500
VS Frequency Severity Primary Split Point to $1,500
EXPECTED ACTUAL Frequency Frequency
ERA RATING REFLECTS A DECREASE OF 70% MEDICAL ONLY PRIMARY AND EXCESS LOSSDOLLARS WHERE ERA IS APPLIED <.70> (6) 5,000 ACT Incurred x .30 1,500 Act/P <3,500> (6) 15,000 ACT Incurred x .30 4,500 Act/P <10,500> ACTUAL TOTAL EXPECTED TOTAL
Alaska • Colorado • Georgia • Louisiana • Massachusetts • New York • Texas • Oregon • California • Delaware • Michigan • New Jersey • New York • Pennsylvania NCCI IOWA, New Mexico, & West Virginia – ERA Just Approved! Monopolistic States States that don’t reduceMedical Only by .70 Non-NCCI States • North Dakota • Ohio • Washington • Wyoming
RTW RTW
QBS =