Workers Compensation Data Sources Moshe D. Goldberg, FCAS CARe Seminar June 6-7, 2005

Page 2 Major Sources of Workers Compensation Data NCCI Independent States’ Bureaus Government Agencies Other – In-house data – Annual statements – Vendors – Industry Associations Moshe D. Goldberg, FCAS CARe Seminar June 6-7, 2005

Page 3 NCCI Data NCCI Data Resources – ELF Books – Schedule Z data – Annual Statistical Bulletin (ASB) – State of the Line Report – Rate Filings – PricePoint – Detailed Claim Information (DCI) Moshe D. Goldberg, FCAS CARe Seminar June 6-7, 2005

Page 4 NCCI Data ELF Books – Injury Type by Hazard Group Distributions – Indemnity and Medical trend rates – Indemnity and Medical case-incurred development factors as well as severity development factors, but only for the first three report years – Of course, ELF parameters by State, Injury Type, Hazard Group NCCI is currently filing new ELFs based on a new procedure. These ELFs are becoming less severe for the layers that reinsurers care most about. Moshe D. Goldberg, FCAS CARe Seminar June 6-7, 2005

Page 5 NCCI Data Z-Data – Developed or undeveloped loss counts and amounts for each year at 1 st through 5 th report by state/class code/injury type – Also standard and manual premiums as well as payroll data – NCCI only has this for NCCI states, but all the independent bureaus make this data available, too. Most independent states provide undeveloped data along with non-injury type specific LDFs. Moshe D. Goldberg, FCAS CARe Seminar June 6-7, 2005

Page 6 NCCI Data ASB is a treasure trove of information, including: – Premium Level Changes by year for countrywide and by state – Benefit Level Changes by state – Five years of calendar year experience by state and countrywide – Average Weekly Wages by state for 5 years Moshe D. Goldberg, FCAS CARe Seminar June 6-7, 2005

Page 7 NCCI Data ASB data (continued): – Ground-up Accident Year paid and case-incurred development (including tails!) for: - Indemnity, Medical and Combined - countrywide and by state – Average Severity by injury type and state – Frequency by injury type and state – Injury Type Distributions by state Moshe D. Goldberg, FCAS CARe Seminar June 6-7, 2005

Page 8 NCCI Data State of the Line Report – Accident Year and Calendar Year Loss Ratios for the industry – Frequency and severity trends for lost-time claims – Rate level changes including schedule credits – However industry-wide and not by state Moshe D. Goldberg, FCAS CARe Seminar June 6-7, 2005

Page 9 NCCI Data Rate Filings – Loss Costs – Trend – Development – Onlevel – Rate adequacy – However, these are on bureau rate/loss cost level and ignores deviations (company filed, schedule credits, etc.) Moshe D. Goldberg, FCAS CARe Seminar June 6-7, 2005

Page 10 NCCI Data PricePoint – Rate Level info - Filed bureau rate/loss cost - Final charged premium – By state and governing class – However only available for primary carriers Moshe D. Goldberg, FCAS CARe Seminar June 6-7, 2005

Page 11 NCCI Data Detailed Claim Information – Average and median severities going back 10 accident years from a sample of claims - Medical, Indemnity and Total - By state (only NCCI states) - A lot of other claim info such as - with or without attorney involvement - nature of injury - other stuff, too Moshe D. Goldberg, FCAS CARe Seminar June 6-7, 2005

Page 12 Independent States’ Bureaus Independent Bureaus – Data from them not as standardized – Some bureaus (e.g., CA) perform many detailed studies Common to all – Rate level histories – Schedule Z data – Rate filings – ELFs Moshe D. Goldberg, FCAS CARe Seminar June 6-7, 2005

Page 13 Independent Bureaus’ Websites (NY) (NJ) (PA & DE) (MA) (CA) Moshe D. Goldberg, FCAS CARe Seminar June 6-7, 2005

Page 14 Government Agencies Bureau of Labor and Statistics – Injuries, Illnesses, and Fatalities (IIF) - Frequencies for fatal and non-fatal injuries - Distributions of injuries by many variables: - Gender, Age, Body Part of Injury, etc. - Lost time bands – National Compensation Survey (NCS) - Payroll information - Wage trends State Governments have data, too. Moshe D. Goldberg, FCAS CARe Seminar June 6-7, 2005

Page 15 Sample of BLS’s IIF Data

Page 16 Other Data Sources Reinsurer’s in-house data – From the reinsurer’s own experience – From submissions Annual Statement-based data – Best’s Aggregates and Averages – Ceding company or competitors’ Schedule P - OneSource Moshe D. Goldberg, FCAS CARe Seminar June 6-7, 2005

Page 17 Other Data Sources Vendors – Workers Compensation Research Institute – Workers Loss Data Institute – Conning Industry Associations – RAA, especially the Loss Development Study – Council of Insurance Agents & Brokers (CIAB) - CIAB website contains their quarterly survey of rate changes for many lines Moshe D. Goldberg, FCAS CARe Seminar June 6-7, 2005

Page 18 Some More Websites (wage trends and payroll info) (Job injury data) AndTheWorkplace.html Moshe D. Goldberg, FCAS CARe Seminar June 6-7, 2005