Changes On the Horizon in 2025 for Workers’ Comp Reporting

February 21, 2025 / 3 min read

Looking ahead to 2025, there are several items for carriers to consider regarding the International Association of Industrial Accident Boards and Commissions (IAIABC) and the Workers Compensation Insurance Organization (WCIO) reporting.

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The first area involves the upcoming transitions to Release 3.1 for FROI SROI reporting. Virginia was the first state that went live with Release 3.1 on January 16, 2025.^[1]Testing with Virginia completed on December 9, 2024. The other states with tentative production dates to 3.1 are as follows: Vermont (May 2025) and Colorado (October 2025). It is important to note that testing for Vermont was originally scheduled for the 3.1 production move in 2023, however, Vermont subsequently pushed back production to 2025.^[2]Testing for Vermont has already been completed to coincide with the original 2023 go live date. No testing period has yet to be announced for the state of Colorado.^[3]

A second item for consideration is NCCI’s addition of six new data elements to the Indemnity Data Call quarterly record. The expansion of data elements was approved by the WCIO on October 16, 2024, with a production go live date by NCCI starting with 4^th quarter 2025 data.^[4]Per NCCI’s circular published on October 10, 2024, these new data elements will help support legislative analysis, pricing, and research.^[5]

A third item to watch involves the expansion of participation for both the Indemnity Data Call (IDC) and Medical Data Call (MDC). As of today, three Data Collection Organizations (DCOs) have expanded participation. New York and New Jersey have expanded the Indemnity Data Call (IDC) and Medical Data Call (MDC) to full participation, rolled out in two phases. New York’s IDC and MDC phase one expansion started as of Q1 2024 for those carriers already reporting in other DCOs. Phase two implementation is scheduled for Q1 2025 for those carriers who have not yet reported to any other DCO.^[6] Regarding New Jersey, phase one of its IDC and MDC expansions begins Q1 2025 for all carriers with a premium market share of .25%, while phase two is currently set for Q1 2026 for all carriers with less than .25% market share.^[7]NCCI is separating out their expansion for IDC and MDC in separate years. Regarding IDC, all carriers with .5% market share must report beginning with Q4 2024 data.^[8]MDC will be required to be reported with Q4 2025 data for all carriers with .5% market share.^[9]

A final item to keep on the radar is the extension in decimal position for loss costs and rates. To date, three DCOs have approved this change, along with their respective production dates, as follows: New York (10/1/2025),^[10]New Jersey (1/1/2026),^[11]and Minnesota (1/1/2026).^[12] Furthermore, four other DCOs (NCCI, Michigan, Pennsylvania, and Delaware) have proposed this change and are currently awaiting approval. Each of these DCOs have already announced their production dates in preparation of the necessary approval as follows: NCCI (1/1/2026),^[13]Michigan (1/1/2026),^[14]Pennsylvania (4/1/2026),^[15]and Delaware (12/1/2026).^[16]In terms of this change, the current standard reporting for loss costs and rates are two decimal positions with the third position reported as “0.” By moving from two decimal positions to three, this will allow for additional pricing accuracy and stability, as well as allow for greater responsiveness to year-over-year rate changes and more precision in pure premium rates.^[17]

Please contact me at Nicholas.Guarda@Verisk.com or 732.887.7556 for questions or to set up a call to discuss how Verisk can help you address these forthcoming changes.

[1] Virginia Workers Compensation Commission (VWC) Announcement: “VWC EDI Claims R3.1 Implementation Effective Date 1/16/2025.”

[2] Workers Compensation Electronic Data Interchange Information Page: Announcement from the Vermont Department of Labor.

[3] Colorado Division of Workers’ Compensation (DOWC) Announcement 10/18/2024. “DOWC EDI Claims Release 3.1, Version 1.0 Requirements Are Now Available.”

[4] WCIO Data Specifications Update Announcement October 16, 2024

[5] NCCI Circular IND-2024-02 – “Indemnity – New Data Reporting Elements – Quarterly Record.”

[6] Letter from Jeremy Attie, President and CEO, New York Compensation Insurance Rating Board to “Members of the Rating Board”, dated February 27, 2023 (RC 2577).

[7] NJCRIB Circular Letter #2069, “MDC IDC Expansion Announcement.”

[8] NCCI Circular IND-2024-01 “Expansion of Indemnity Data Call Participation.”

[9] NCCI Circular MED-2024-01- “Expansion of Medical Data Call Participation.”

[10] NYCIRB Circular R.C.2597 “Transition to Three Decimal Places for Loss Costs Values and Expected Loss Rates Effective Date: October 1, 2025.”

[11] NJCRIB Circular Letter #2068 “Decimal Extension of Rates and Excess Elements.”

[12] MWCIA Circular Letter No.24-1836 “Decimal Extension of Pure Premium Base Rates & Expected Loss Rates.”

[13] NCCI Circular FYI-CW-2024-01 “Countrywide – Decimal Extension of Loss Costs, Rates, and Expected Loss Rates.”

[14] CAOM Circular Letter 343 “Notification of an Extension of the Decimal Places in Voluntary Market Advisory Rating Values.”

[15] PCRB Circular NO. 1806 “Changes to Three Decimal for Loss Costs and Expected Loss Rates.”

[16] DCRB Circular NO. 1035 “Changes to Three Decimal for Loss Costs and Expected Loss Rates.”

[17] See endnotes 10, 11, and 12, NYCIRB Circular R.C.2597 “Transition to Three Decimal Places for Loss Costs Values and Expected Loss Rates Effective Date: October 1, 2025.” NJCRIB Circular Letter #2068 “Decimal Extension of Rates and Excess Elements.” MWCIA Circular Letter No.24-1836 “Decimal Extension of Pure Premium Base Rates & Expected Loss Rates.”

Changes on the Horizon in 2025 for Workers’ Comp Reporting