The Indiana Compensation Rating Bureau (ICRB) is a statutory rating organization. It is a private non-profit, unincorporated association of all insurance companies licensed to write workers compensation insurance in Indiana.
The law empowers the ICRB to gather information from its member companies that may be necessary to establish fair and adequate advisory rates. In addition to the data collection and ratemaking functions, the ICRB is responsible for various workers compensation programs: rules promulgation, experience rating, inspection and classification, assigned risk administration, industry education, and dispute resolution.
News and other interesting stuff.
1. Second Injury Fund Assessment and Policy Surcharge (01/08/12)
The WC Board of Indiana will assess carriers and self-insureds $6,386,488 in 2013. The statewide average policy surcharge factor is 0.0078. For more info, please see ICRB Circular 2013-01, dated January 7, 2013, titled "Second Injury Fund Assessment & Policy Surcharge Factor".
2. Indiana WC Outlook and Observations (10/18/12)
NCCI has updated its presentation (PDF file) from March 2012 which captures a lot of the information typically seen in its State Advisory Forums. This information compliments and expands upon the ICRB annual report.
3. Approved January 1, 2013 Advisory Rate Filing (09/26/2012)
On September 26, 2012 the Indiana Department of Insurance (IDOI) “FILED” the advisory rate filing which completes the approval process The filing contemplates an increase of:
• 4.3% to the loss costs;
• 5.0% in overall premium level, and;
• 5.0% in overall rate level.
Please open the PDF documents listed below for more information:
ICRB Circular 2012-07
Rate Filing Document
4. Change to Experience Rating Primary/Excess Split Point (5/7/2012)
For the past 20 years, the portion of losses under the Experience Rating Plan considered “primary” has been set at $5,000. All of the first $5,000 of a loss enters into the calculation. The amount above $5,000, “excess” loss, is discounted by a weighting factor. During this time, the average cost of a claim has tripled. Beginning on all 2013 ratings, the amount considered primary will increase to $10,000. In 2014 the split point changes to $13,500, and in 2015 it will become $15,000. In general, both credits and debits will become larger. Seventy-four percent will be within a range of -.05 to +.02.
Additional information is included in our related Comp Clues document titled “Experience Rating: Split Point".
5. Short and Long Term Policies (02/20/12)
Effective March 1, 2012, we created several Indiana state rule exceptions to the Basic Manual and the Policy Period Endorsement so that the rules are consistent with Indiana statute which does not permit short term policies. IC § 22-3-5-5(c)(6)) states that policy periods should be one or three years, or continuous.
We view the rule change merely as a technical clarification matter. For more information, please refer to Item Filing 01-IN-2012 and our CompClues document titled “Short Term Policy”.
6. Payroll Rule Change (01/11/12)
The advisory fixed payroll amount for sole proprietors, partners, and LLC members is eliminated effective 01/01/2012 for new and renewal policies. These business owners who elect to be covered will be treated the same as an executive officer for premium determination purposes and are subject to the same advisory maximum and minimum payroll limitations listed on the Miscellaneous Values Pages (updated annually). For more information, please refer to Circular 2011-07.
Also, the PIA and Big I magazines both featured articles (click here) on this topic in December 2011.