Risk Management

The new NYC Experience Modification Rating

Risk Insights


We wanted to make you aware of the above reference. The NY Compensation Insurance Rating Board will now provide a standalone NY experience modification rating similar to NJ, CA, PA, DE, and MI. 


The new methodology “EMR” will change and will include the following in its formula:

  • A new simplified formula
  • Variable primary/excess split points
  • A new EMR capping/maximum debit mod procedure based on the number of claims
  • Discontinuance of the merit rating plan; all NY risks with experience during the experience rating period will be experience-rated


The new modification methodology will take effect on October 1, 2022, and as the formulas have not been made explicit, the specific change from your current modification is not known at this time; however, we believe that it would be similar. The NYCIRB has stated that the maximum that any modification can be increased will be capped at 30% regardless of the new methodology used.


We will, of course, be seeking updates as to the exact formulas that will be used so that any significant changes can be notified to you for budget purposes. Still, once again, our anticipation is that if the majority of your payroll is NY impact should not be significant; however, if multi-state payroll is involved, depending on where the claims occur, it can have an impact on the other states, which may or may not be total change dramatically the overall cost of the program but will need to be looked at closely. We will be communicating on this as more information becomes available and providing advice as to impact as near as possible with the information we received.