In determining the amount of loss liabilities for which the WCRA is responsible, the actuarial staff reviews the WCRA historical claim data and projects ultimate losses which include:

  1. The claims dollars already paid.
  2. The current case reserves on claims already reported to us.
  3. Adjustments up or down on current case reserves (case development).
  4. Claims that have been Incurred But Not Reported (IBNR).

Total reserves are made up of case reserves, case development, and IBNR. Reserves are established for future claim payments for injuries that have already occurred. The year in which a work-related accident occurs is called the accident year. Reserves are grouped by accident year. In order to make sure the proper liability is established for each year of WCRA coverage, each accident year is re-examined annually as more data is accumulated and more claims are paid.