Workers Comensation Experience Modification Rating Analysis
Mod Analysis
The workers compensation experience modification factor can often be an overlooked or misunderstood element of an employer's workers comp policy. While most employers realize that a lower experience modification rating is a good thing, many don't recognize the opportunity for control they have over this number and the resulting impact on their net cost of workers compensation insurance. Proper planning and partnership with Lykes Insurance will bring valuable insight and assistance in the management of your experience modification rating as an important cost driver.
Accuracy of data submitted for the calculation of workers compensation experience modification, managing the frequency and severity of claims, awareness of rating rules, and long range planning are all essential elements in the management of the experience modification factor. Lykes Insurance has the expertise and experience to coach our clients in these areas and provide accountability through our Mod Analysis Program (MAP).
Benefits of the Lykes Insurance MAP™ include:
- Analyze and verify the accuracy of experience modifier calculations by the NCCI (47% have errors) and correct, if necessary
- Ability to accurately project the experience rating factor before it is released by the NCCI
- Identify the minimum mod possible and calculate the controllable mod, showing potential premium savings
- Analyze losses to show what specific losses cost in increased premiums, including frequency and severity ratio
- Better communicate the factors impacting the mod and direct primary loss prevention services to where most needed
- Increase accuracy of cost allocation and risk management decisions for planning
Contact a Lykes Insurance Risk Consultant to arrange your MAP and chart a new course for greater control and cost savings in your workers’ compensation experience modification program.