New Split-Point change! Can we project your 2013 experience modification?

Written by
October 5th, 2012

Absolutely!  We will say that with CAUTION.  The State of Wisconsin has a rate change date of 10/1/13.  Our in-house Smart Comp program projects and verifies mods on a routine basis.  CAUTION:  With this 10/1/13 rate change, comes changes in the “D” ratio.  The “D” ratio is a factor used to determine the amount of expected losses for each classification that are Expected Primary Losses.  Without the rate table adjustments it is very difficult to accurately predict the overall increase or decrease of proposed split point changes on a specific employer’s experience mod.

Takeaways:

  •  The impact will vary by how many claims fall in the increased split point range (i.e., $5,000-$15,000)
  •  If you have a credit mod (under 1.00) with few or no losses greater than $5,000 you should more than likely see a decrease
  •  If you have a debit mod (over 1.00) with several claims that fall in the increased split point range you should expect to see an increase

We typically see the rate change from the State of Wisconsin come through mid-July of each year to be effective 10/1/13.  If you have a 1/1/2013 policy effective date and strictly do business in the State of Wisconsin, expect to see this split point change on 1/1/2014.  We will be actively projecting experience modifications that incorporate this change as soon as we receive the new rates!

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