by Christine Williams ,
Managing Director, Worker’s Compensation Center of Excellence, US Casualty Practice
02/13/2023 · 8 minute-read
The New York State Department of Financial Services approved a new edition of the NY Compensation Insurance Rating Board’s (NYCIRB) Experience Rating Plan Manual effective for experience modification factors (ex mods) with a rating date on or after October 1, 2022.
The new rating plan is part of a multi-year evaluation of the experience rating program that the NYCIRB started in 2017. The review found that the credits and debits issued under the current experience rating program are insufficient to adjust premium for individual risks and adequately incentivize workplace safety. They found that well-performing risks were not receiving enough credit, and risks with worse than expected experience were not receiving enough debit. After testing several alternative methodologies, a new plan was developed.
The new plan:
The new formula’s impact to a particular employer’s mod will depend on the employer’s circumstances, namely, the nature of payroll and claims that enter the mod calculations. In addition to the major mod formula change, the new plan revises provisions that apply to situations that are more specific, for example, multiple claim accident limitation.
Read our guide for an indepth analysis of the new rating formula and the potential impacts to you workers' compensation program.