A study commissioned by the South Carolina Department of Insurance has found flaws in National Council on Compensation Insurance (NCCI) methods of collecting and reporting data used to determining state workers' compensation rates.
The target market conduct examination report, prepared by AGI Services, was authorized by the Insurance Department to determine if data received by NCCI from insurance carriers is accurate and suitable for ratemaking.
It concluded that "the majority of the data submitted to NCCI for use in ratemaking is deemed to be sufficiently accurate." However, the report continued that certain data reported by carriers, the Standard Earned Premium at Designated Statistical Reporting (DSR) Level, which is used by NCCI to calculate overall loss cost change, is not accurate.
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