Interactive Residual Market Burden Estimator
The above link opens an interactive Excel spreadsheet
that outputs an estimated Massachusetts Workers’ Compensation residual
market load.
To run the spreadsheet, you must enter the Policy Year,
the Residual Market Loss Ratio, the VDAC Factor, and the Interest Rate.
- Enter a Policy Year between 2014 and 2023.
- The program provides NCCI’s most current Residual Market Loss
Ratio estimate for the Policy Year you entered. You can type in the
Loss Ratio provided, or you can enter an estimated Loss Ratio.
- The program also provides the most current Leveraging Factor
estimate and the VDAC Factor upon which it is based. (The Leveraging
Factor equals the VDAC Factor multiplied by the ratio of Servicing
Carrier Written Premium to Voluntary Assessable Premium.) This
function is useful because it allows the user to estimate the VDAC
Factor for the year(s) for which the final VDAC Reapportionment has
not yet been performed. You can type in the VDAC Factor provided, or
you can enter an estimated VDAC Factor.
- The program calculates a nominal burden or a discounted burden.
To get the nominal burden, enter an interest rate of 0%. For a
discounted burden, enter your choice of interest rates (between 1%
and 12%).
Since this interactive does not utilize macros, you will
not have to update your security settings.
To assist in your selection of a Loss Ratio, refer to the
Pool Loss Ratio Indications and Selections from the Agenda of the latest Massachusetts Workers Compensation
Assigned Risk Pool Reserving Committee Meeting. For additional resources,
refer to the WCRIB’s latest Updated Information on Residual Market Share Special
Bulletin or the latest
Voluntary Assessable Premiums Special Bulletin found in
the Special Bulletins pages of the web site.