May 5, 2017

Barnstable Vintage

We see the risks

 

The Barnstable Vintage is a workers’ compensation insurance underwriting model that scores a risk based on three fundamental parameters of risk:

  • Severity
  • Frequency
  • Jurisdiction
Barnstable Vintage

 

A Smarter Way to Underwrite Workers’ Compensation.

Barnstable Vintage

 

Severity

Composite of three measuring Indexes.

  • Best Hazard Index (1-10) – 30%
  • NCCI Hazard Grade A-G (1-7)– 30%
  • Relevant Propensity for Excess Loss – 40%

The Barnstable Vintage

A Compilation of the three indexes weighted by affect on underwriting profitability of a risk.

  • Severity – 30%
  • Frequency – 30%
  • Jurisdiction – 40%

Scale Values
Scores are compiled into a scale from 0%-100% into three ranges..

  • 0% – 40% – Red – Undesirable Risk
  • 40% – 60% Yellow – Acceptable Risk
  • 60% – 100% Green – Desirable Risk

 

Purpose
The purpose for the development of the Barnstable was to streamline and identify what risk classes within a jurisdiction are winners or losers in the workers’ compensation casino. This takes into account that the same class of business does not perform equally in all jurisdictions.

 

Frequency and Rate

Frequency and Rate

Application for Programs

Application for Programs

 

Application
Book Underwriting

  • The Barnstable aggregates total scores and client level scores.
  • Can recalculate the Barnstable score with the removal of specific clients
  • Can identify on-going trends by category – Jurisdictional shifts, severity increases, etc.