Inflation Trend Factors

Tutorial

The Inflation Trend Factor Calculation page allows you to view or change the inflation trend factors based on weighting percentages that you enter. The default inflation trend factors in Loss Forecaster are based 50 percent on medical cost inflation and 50 percent on changes in average wages as measured by the United States Department of Commerce for the chosen industry.

You can change these percentages by indicating different percentage amounts on the Payroll % and Medical Care % fields on this page.

Inflation factors are applied to adjust historical loss limits to more accurately reflect the expected cost level for the period being projected.

Inflation Trend Factor Calculation video

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Inflation Trend Factor Calculation

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