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Definition of National Council on Compensation Insurance

The National Council on Compensation Insurance (NCCI) is a United States rating and data collection bureau that specializes in workers' compensation. The NCCI operates with a not-for-profit philosophy. It is owned by its member insurers. Each year, the NCCI collects data concerning more than four million workers' compensation claims that are made and two million workers' compensation policies. In many states, the NCCI is the bureau that collects data for rate making and determines proper workers' compensation classifications and experience modification factors. It produces a number of manuals that govern the details of how workers' compensation insurance premiums are calculated in many states.

The NCCI uses the information that it collects to provide:

  • Workers' compensation insurance rate and loss cost recommendations
  • Cooperation with other data-collection agencies to ensure a credible database
  • Analysis of industry trends in workers' compensaiton costs
  • Analysis of regulatory and judicial decisions on workers' compensation
  • Cost analysis of proposed legislation regarding workers' compensation benefits and regulations.
  • Special claims research projects.

The NCCI provides the data and analysis to regulatory authorities, non-governmental workers' compensation agencies, insurance companies, employers needing information on workers' compensation issues and state workers' compensation insurance funds.

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