1. © 1999 National Council on Compensation Insurance, Inc. ® Experience Rating: The X-Files The CAS Seminar on Ratemaking Opryland Nashville, Tennessee March 11-12, 1999 Robin Gillam Vice President, Corporate Actuarial  

2. © 1999 National Council on Compensation Insurance, Inc. ® My Mod’s Too High... â Did the rate go down? â How much is your own fault?

3. © 1999 National Council on Compensation Insurance, Inc. ® Experience Mod - Year 1 ABC Corp

4. © 1999 National Council on Compensation Insurance, Inc. ® Experience Mod - Year 2 ABC Corp

5. © 1999 National Council on Compensation Insurance, Inc. ® My Mod’s Too High... â Are the claims over-reserved? â Have you read the fine print

6. © 1999 National Council on Compensation Insurance, Inc. ® Experience Mod - Original ACME, Inc.

7. © 1999 National Council on Compensation Insurance, Inc. ® Experience Mod Losses Reduced to Settlement Values ACME, Inc.

8. © 1999 National Council on Compensation Insurance, Inc. ® Experience Mod All Labeled Losses Reduced ACME, Inc.

9. © 1999 National Council on Compensation Insurance, Inc. ® â High primary credibility  Plenty of swing: My mod changed too much Revised Experience Rating Plan (RERP)

10. © 1999 National Council on Compensation Insurance, Inc. ® Sample 1 - No Losses Revised Experience Rating Plan (RERP)

11. © 1999 National Council on Compensation Insurance, Inc. ® Sample 2 - Small Losses Revised Experience Rating Plan (RERP)

12. © 1999 National Council on Compensation Insurance, Inc. ® Sample 3 - One Large Loss Revised Experience Rating Plan (RERP)

13. © 1999 National Council on Compensation Insurance, Inc. ® Sample 4 - Multiple Losses Revised Experience Rating Plan (RERP)

14. © 1999 National Council on Compensation Insurance, Inc. ® â Graduate impact of eligibility  Increase minimum ballast  Smooth caps on mods Graduated Experience Rating Tables (GERT)

15. © 1999 National Council on Compensation Insurance, Inc. ® Sample 1 - No Losses Graduated Experience Rating Tables (GERT)

16. © 1999 National Council on Compensation Insurance, Inc. ® Sample 2 - Small Losses Graduated Experience Rating Tables (GERT)

17. © 1999 National Council on Compensation Insurance, Inc. ® Sample 3 - One Large Loss Graduated Experience Rating Tables (GERT)

18. © 1999 National Council on Compensation Insurance, Inc. ® Graduated Experience Rating Tables (GERT) Sample 4 - Multiple Losses

19. © 1999 National Council on Compensation Insurance, Inc. ® â Reduce financial penalty of small losses  Take the weight off medical only claims  Slightly increase excess credibility Experience Rating Adjustment (ERA)

20. © 1999 National Council on Compensation Insurance, Inc. ® Sample 1 - No Losses Experience Rating Adjustment (ERA)

21. © 1999 National Council on Compensation Insurance, Inc. ® Sample 2 - Small Losses Experience Rating Adjustment (ERA)

22. © 1999 National Council on Compensation Insurance, Inc. ® Sample 3 - One Large Loss Loss Experience Rating Adjustment (ERA)

23. © 1999 National Council on Compensation Insurance, Inc. ® Sample 4 - Multiple Losses Experience Rating Adjustment (ERA)