The National Council on Compensation Insurance (NCCI) is a non-profit organization that is responsible for collecting and analyzing data on workers’ compensation insurance in the United States. NCCI acts as a statistical agent for the workers’ compensation insurance industry, providing insurers with data and analysis that is used to determine rates for workers’ compensation insurance. The NCCI also acts as an advisor to state insurance departments and provides educational resources for insurers and policyholders.

Experience rating is a method used to calculate workers’ compensation insurance rates that take into account a business’s specific claims history. It works by looking at the claims experience of a specific business, and comparing it to the claims experience of similar businesses in the same industry. The goal of experience rating is to create a more accurate picture of the risk associated with insuring a specific business, and to ensure that businesses are paying the appropriate rate for their level of risk.

Experience rating is used in many states by the NCCI, it’s called the “Experience Rating Plan” which is a system of rating that assigns a specific rate to each employer based on the employer’s past losses. The experience modification factor (EMR) is calculated by comparing a company’s actual losses to its expected losses, based on its industry and payroll. Experience rating provides a way to adjust rates to reflect an individual employer’s past experience, rather than applying an industry average rate.