New Chief Donnell: Independence, Objectivity in Workers’ Comp Remain NCCI’s Core Values

For more than 90 years the National Council of Compensation Insurance (NCCI) has served the workers’ compensation industry as a provider of data and information. Its mission has been to “help enable a healthy workers’ compensation system,” according to William E. Donnell, president and CEO of the NCCI, who says the industry rating and advisory organization prides itself on fulfilling its mission in an “independent and objective” fashion.

“The reason that is important is that we don’t support any one stakeholder or constituent group,” he said in a recent interview.

Donnell, formerly president for Swiss Re America’s U.S. property and casualty reinsurance, joined NCCI in early December, replacing Stephen J. Klingel who retired in February.

Donnell spoke with Insurance Journal‘s Andrea Wells about his vision for the organization, the challenges NCCI faces, and what role he believes NCCI should play in workers’ comp.

What is your vision for NCCI?

William Donnell: One of my early observations since joining NCCI is that our mandate — is very similar to the one that established the firm a little over 90 years ago. Our mission/mandate is to help enable a healthy workers’ compensation system. Having said that, this year we are taking a fresh look at the external environment. Not only how it looks today but how it may look five years out. We are right in the middle of that and it will be completed this year. One thing that will not change is the mandate and we will compare any major change forward against that mandate. …

From my early five months, I can tell you that feedback I’ve received externally is that NCCI is a strong brand. Employees are expert and engaged. The firm and employees are very well respected by our various constituents. We want to keep that leadership position. Quite frankly I don’t anticipate any radical changes.

Do you expect to expand in research?

Donnell: What we have done in the research area is appreciated by various stakeholders. We bring to the table the unique ability to analyze and report on industry information that we collect. … Our current focus is the term “applied research,” which supports our ability to make accurate loss cost recommendations. We’ve got to get that right. If we don’t get that right, then a lot of other things don’t matter as much. We presented some research at the NCCI conference in May. One of the most recent topics was to compare the impact of the Affordable Care Act on workers’ comp in terms of availability of services and also trends in workers’ comp prescription drug costs.

Is there an area or issue you would like to see NCCI take more of a leadership role on?

Donnell: When I look at our role in the industry it’s very, very strong. I’m very comfortable with our leadership role. But regardless of what we lead in it’s very important that we go back to that mandate and that we have a reputation for independent objective recommendations. The reason that is important is that we don’t support any one stakeholder or constituent group. We have to be independent and objective and because of that we are able to achieve our mandate of a healthy work comp market.

One of the things I want to focus on is making sure that we continue to be relevant in the system. I can’t say it enough, what we do is enable a healthy worker’s compensation system.

Who are NCCI’s constituents?

Donnell: We have a very broad group of constituents. You’ve got the insurers, the regulators, the legislators, agents, brokers, policyholders. It’s as broad as anyone that has a broad interest in workers’ compensation. With that broad of a constituent group it has to go back to independent and objective recommendations. Making sure that our knowledge and expertise are right on, and then tying it back to the system being healthy.

What are the challenges facing NCCI as an organization?

Donnell: I would say the challenges for NCCI mirror those of the system and its participants. Externally you’ve basically got challenges to the premise of the grand bargain. Maintaining this delicate balance between system benefits and cost, and then adopting to the ways employees will be working in the years ahead. Those are the external challenges and therefore they are our challenges.

Our challenge is essentially to make sure that when people come to us with a question we have the ability to educate them; to provide data. … We at NCCI have the ability to back up what we say with data and I think that’s really important. …

The one thing I do believe is that you don’t survive nearly 100 years by being stagnant. I’m absolutely confident that NCCI is going to continue to succeed.

Do you see NCCI as an advocacy organization?

Donnell: What we do is provide objective, independent data of industry information and that’s not going to change. What we don’t do is advocate on behalf of any group or organization.