The National Council of Compensation Insurance (NCCI) is a group of people who hold the details that will lead to how insurance carriers set their rates. They’re the ones who are collecting and analyzing the information, and of finding the most efficient and accurate ways to parse the numbers and risks. Find out more about what they do, so you’re not taken by surprise when change makes its way to your business.
Core Services
NCCI is looking to get the word out when it comes to insurance, so they spread the information and provide tools for everyone to learn more about workers’ compensation. They’re constantly going over the trends in every industry to spot which sectors may need more education when it comes to providing safe facilities and duties. They assist in coming up with exact prices and rates that insurance companies and employers will use to prepare their insurance plans. NCCI provides data products to more than 900 different insurance companies across 40 different states.
Who Uses These Services
This group is meant to advise and analyze both the market, the laws, the money, and the compliance levels of different regulations and mandates. The people who use this service the most are insurance companies, but independent bureaus, and self-insured organizations also rely heavily on the numbers and opinions of the organization. Risk managers, legislators, and workers compensation agencies will also utilize different tools available. General employers will check their own experience ratings with NCCI for signs that they need to change their workplace safety measures (a higher score will mean higher insurance rates.)
Who They Are
NCCI has over 900 employees who are working across different systems to get the information ready to make decisions. They’re faced with a nearly endless string of data, so it’s not small feat. They rely on regulators, coalitions, and trade associations as well as insurers to help them ensure that they’re getting everything right. It will be someone from this group that a state or regulatory agency will listen to when it comes to raising or lowering costs, so their influence is widely felt in a variety of industries. While big data is still in its infancy in terms of exactly how to organize it all, they’re constantly working on better ways to get to the heart of the problem.
Workers compensation can feel like just a line item to business owners who already feel like they can’t control their budgets, but it’s much more than that. There’s a lot of decisions made behind the scenes that determine what you pay and when you pay it. Understanding the climate of NCCI can make it less of a mystery.
