The New York Compensation Insurance Rating Board will now stand completely on its own just like NJ, CA, PA, DE, MI and all the monopolistic states. It was recently announced that they are withdrawing from the NCCI Experience Rating Plan.
A New York specific experience rating plan has been developed and will impact all insureds with New York related payroll. New York specific Experience Modification Ratings (EMR) will be generated using this new methodology for all policies with a rating effective date on or after October 1, 2022.
Highlights of the new methodology include:
- A new simplified formula
- Variable primary/excess split points
- A new EMR capping/maximum debit mod procedure based on the number of claims
- Discontinuance of the merit rating plan; all NY risks with experience during the experience rating period will be experience rated
You can view an animated video on the new EMR formula HERE.
During the first year of phasing in the new EMR methodology there will be a “capping” program for EMRs with Rating Effective Dates between October 1, 2022 and September 30, 2023. If the EMR under the new methodology exceeds the EMR that would have been generated under the old formula by more than 30%, the EMR will be capped at the EMR derived under the old formula plus 30%.
More information about New York’s decision to leave the NCCI experience rating plan can be found on the NYCIRB website.
Here is an overview of what you will find:
- official bulletin from the bureau
- a 9-page detailed pamphlet walking through the rationale and reasoning for the change, as well as, a synopsis of the new EMR formula and how it works
- an interactive worksheet walking you through the new EMR worksheet
- an animated video walking through the new formula
- NY Experience Rating Manual effective 10/1/22
- updated statistical plan pages
- actuarial memorandum
- links to webinars presenting the changes
Please go to the New York Compensation Insurance Rating Board website to learn more at https://www.nycirb.org/experience-rating-transition.php
In the meantime, please do not hesitate to reach out to your Graham Service Team with any questions you might have.