NCCI Eyes Data Collection Change
By Daniel Hays
NU Online News Service, Aug. 20, 4:00 p.m. EST, Orlando, Fla.?The National Council on Compensation Insurance is considering a change in the way it uses and collects data to make recommendations for workers' compensation insurance rates, an executive with NCCI said.
The disclosure came from Dennis Mealy, NCCI chief actuary, when he spoke on a panel at the Workers' Compensation Educational Conference here sponsored by the Florida Workers' Compensation Institute with National Underwriter and the Risk and Insurance Management Society, Inc.
Mr. Mealy made his remarks in response to an audience question as to whether the Boca Raton, Fla.-based NCCI's ratemaking process was adequate when there was a lag in data that was used?specifically that which reflected medical costs.
He said NCCI is examining its ratemaking methodology, used to provide rate and advisory loss cost filings recommendations for 39 states.
NCCI, Mr. Mealy said, is looking at adding econometric modeling?the statistical inferencing system to explain variables?as a tool for its process.
In addition, he said, NCCI is "toying with collecting data more frequently from carriers" ?a point the organization will be discussing with its members.
Mr. Mealy said that a consulting firm had examined NCCI ratemaking methodology and discovered no major problems? "they didn't find a smoking gun."
The actuary said that NCCI will in future be discussing the ratemaking methodology with state organizations that perform the same work for their jurisdictions.
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