Workers' Compensation
Insurers Association
Decimal Extension
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What is changing?
FAQ
Minnesota pure premium base rates, assigned risk rates, and expected loss rates are moving from two decimal places to three decimal places in precision effective 1/1/26.
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Why is an additional decimal place added?
FAQ
This change will improve accuracy and stability. Please see the article from MWCIA Q1 2024 newsletter for more details: Decimal Extension – Why Do It?
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What is the impact of this change?
FAQ
None, this is a premium neutral update.
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Is this a methodology change?
FAQ
No, the rounding rules are updated. The underlying derivation of pure premium base rates and expected loss rates (ELRs) are not changed.
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What if carrier systems are not ready yet?
FAQ
The Minnesota Department of Commerce advises carriers may file for an effective date after 1/1/26 should additional time be required to update their systems.
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Will experience modification factors be extended to three decimal places?
FAQ
No, experience modification factors will remain at two decimal places. The expected loss rates (ELRs) used in the experience modification calculation will expand to three decimal places.
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What miscellaneous values will also be extended to three decimal places?
FAQ
Guidance for Statistical Code 9741Catastrophe (Other Than Certified Acts of Terrorism) will have a trailing zero. Guidance for Statistical Code 9740 Catastrophe Provision for Terrorism currently uses three decimal places.
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How does this change impact Policy Data?
FAQ
WCIO WCPOLS supports reporting manual rates with three decimal places. Policies effective 1/1/26 and subsequent will be reported using three decimal manual rates.
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How does this change impact Unit Statistical Data?
FAQ
WCIO WCSTAT supports reporting manual rates with three decimal places. 1st report valuations on 7/1/27 and subsequent will be reporting with three decimal manual rates.