NCCI Actuary Explains the Many Flavors of Frequency

Claim frequency is a closely watched statistic in workers’ comp, and a new article from the National Council on Compensation Insurance explains the different ways that the figure is calculated. Frequency usually refers to the ratio of claim counts to a selected exposure base during a particular period, said the article’s author, NCCI director and actuary Jim Davis. Claim counts might include medical-only claims, indemnity claims or both. The exposure base could be payroll, premium, number of workers or other measures. And claims may be further subdivided by state, industry gr...