In 2014, Texas adopted the NCCI Basic Manual, with Texas exceptions. The move represented the first in a phased-in approach to joining the country's other NCCI states.
Texas Mutual recommends agents regularly visit the NCCI website to stay current on the latest developments. We also encourage you to bookmark this page as a supplement to the wealth of information on NCCI's website.
Rates to drop July 1, 2016
Effective July 1, 2016, NCCI has recommended a 9.9 percent average decrease in loss costs. TDI approved the filing and recommended a 10 percent average decrease in the state's relativities.
Expect minimal impact from split point increase
Also effective July 1, 2016, NCCI will increase the split point between primary and excess loss from $15,500 to $16,000. Other factors in the equation will also change in a stabilizing manner. In 2015, NCCI increased the split point from $5,000 to $15,500, with minimal disruption.
Negotiated e-mods going away
Effective July 1, 2018, workers' compensation carriers writing business in Texas will no longer be authorized to negotiate e-mods. We understand this might concern some employers, particularly contractors. We encourage you to remind your clients that e-mods are a tool used by the insurance industry to guide rate decisions. Furthermore, e-mods are just one of many elements in the rating algorithm.
The most effective thing employers can do to prepare for the 2018 change is to stop using e-mods to evaluate risk. Don't look at a rate modifier that is based on changing historical expectations. Instead, look forward to exceeding safety and performance expectations and reducing costs by:
Use these resources to learn what Texas' transition to an NCCI state means to you and your clients. If you have questions, contact your agency representative, or call Texas Mutual at (800) 859-5995:
- Presentation on key changes in the NCCI experience rating plan
- Webinar on the basics of e-mods
- Overview of recent NCCI developments from across the country
- Agent article explaining how NCCI affects experience rating
- Article for agents addressing how changes to e-mods will affect their clients
- Article for contractors explaining what changes to e-mods will mean for business
- Article explaining new NCCI inspections in Texas