Six months prior to renewal of the policy: This is a key time to check on reserves, because claims are reported to the National Council on Compensation Insurance (NCCI) at that time.
Lastly, a significant factor to a successful Reserve Reduction program is the ability to obtain a reduction from the adjuster. This is where using an outside occupational health nurse or risk manager is invaluable. They have knowledge about appropriate medical, indemnity and legal reserves, and have experience in negotiating with adjusters on a level playing field.
A strong Reserve Reduction program is proactive and closes workers comp claims more quickly and less expensively than if left unattended. Successful Reserve Reduction can yield 20% to 30% savings on each claim, and an average of 20% reduction in premium costs for three years. ET