There is a tremendous amount of information floating aroundabout the upcoming changes to the NCCI experience rating formula.Back in February, I wrote about the change . Many discussions includemisconceptions about the nature of the change. There are three mainmisconceptions:
Myth #1 - As a result of the change, everyexperience mod will increase.
Reality: NCCI reports that 18 percent ofmods will increase more than 2 points in the first year of thechange. The spit point isn't the only thing that will change in thenew formula. The D-Ratio, which determines the portion of expectedlosses for a class code that is expected to be primary loss, willalso be increasing. Other rating values may also change, but wedon't know about those things yet. This increase in the D-Ratio isgoing to also have an impact on:
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