|
Spring 1999
No Sic Codes Anymore...
Yipes, it's NAICSby William Wade,
AmeritasThe backbone of most rating systems in group insurance is its industry loads and discounts. To supplement our Dun & Bradstreet Reference Books and help our underwriters determine the proper SIC factors, we use the Standard Industrial Classification Manual published by the government.
Our latest book was getting old (l987). When I tried to order a new one, I found that the Office of Management and Budget (OMB) adopted a new system of classification. Studies were made in cooperation with Canada and Mexico, and the new NAICS (Nakes) classification system was adopted. Effective January l, l997, federal statistical data will be published using the new system which includes a six-place code versus a four-place code.
Quoting from the OMB's Notice of Final Decision, "the Standard Industrial Classification (SIC) was originally developed in the l930's to classify establishments by the type of activity they are primarily engaged in and to promote the comparability of establishment data describing various facets of the U.S. economy. In recent years, rapid changes in both US and world economies brought the SIC under increasing criticism."
The new classification system will provide a more consistent framework for statistical analysis, but the system is different. Underwriters and Actuaries will have to relearn the new classification system eventually. Check out OMB's website: www.webplaces.con/naics/ and other cross-reference downloads. Be in the know about OMB's NAICS.
About GUAA | GUAA Calendar | GUAA Directors | GUAA Committees | Job Posting | Join GUAA | Links