Assigned Risk: Surcharge

Explanation of the Indiana assigned risk surcharge of 30%.

Annually as part of our January 1 rate filing reviews, our Actuarial Committee, in conjunction with our actuarial vendor, the NCCI, reviews the adequacy of the assigned risk surcharge.

The actuarial reviews compare the loss ratios for the voluntary market to the loss ratios for the assigned risk market. A five-year experience period is reviewed, and the losses and premiums are actuarially adjusted to reflect current benefit and voluntary market premium levels and the claims costs are developed to estimated ultimate level.

Effective January 1, 2024, a 30% surcharge is applicable to the premium in excess of $2,750 of the standard premium, subject to audit​.

The surcharge prior to January 1, 2020 was 25% in excess of $2,500 of standard premium.

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