The experience modification factor is a snapshot assessment of risk for an insurance carrier. In guaranteed cost programs it is a primary factor in the pricing of workers’ comp premiums, and this formula is key to understanding how injury management best practices result in lower costs. For high deductible and self-insured employers, the experience mod offers a simple benchmark which can be leveraged for greater program insight.
In this training you will learn…
– how to speak in simple language about the complex mod formula with clients or senior management
– what elements of workers’ comp claim costs actuaries view as most important
– how changes in claim outcomes affect premium pricing
– the simple formula to calculate your minimum experience mod
– the impact of one claim on your experience rating