There is a tremendous amount of information floating around about the upcoming changes to the NCCI experience rating formula. Back in February, I wrote about the change . Many discussions include misconceptions about the nature of the change. There are three main misconceptions:
Myth #1 - As a result of the change, every experience mod will increase.
Reality: NCCI reports that 18 percent of mods will increase more than 2 points in the first year of the change. The spit point isn't the only thing that will change in the new formula. The D-Ratio, which determines the portion of expected losses for a class code that is expected to be primary loss, will also be increasing. Other rating values may also change, but we don't know about those things yet. This increase in the D-Ratio is going to also have an impact on:
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