The 1999 Table of Insurance Charges

This paper describes the development of the 1999 Workers Compensation Table of Insurance Charges (Table M), filed in NCCI states to be effective November 1, 1998. It presumes the reader knows what Table M is, and how it is used in retrospective rating. Familiarity with the NCCI Retrospective Rating Plan (the Plan) is helpful. Development of the 1999 Table M is described in steps, beginning with the sample data and how it was manipulated, followed by the algorithm used to model loss ratios, methods for developing the loss ratio distribution, graduation of the excess ratios and derivation of Expected Loss Size Ranges used in the Plan. The impact on premium of the proposed new Table M is estimated.