Workers Comp Audit Stress Reducer
Use It For Your Next Premium Audit

E-Mods and X-Mods Affected By Lack of Technology


Lack Of Technology – E-Mods and X-Mods

All E-Mods and X-Mods are affected directly by technology. In my last post, one of the statistics that jumped off the page caused me to write this blog separately as there is a study that finally relates the lack of technology by Workers Comp carriers and higher Emods (Xmods in CA).

Graphic Of E-Mods and X-Mods on Screen

The exact quote from the article is:

While 92% of the claims executives we surveyed said they could reduce loss costs by increasing consistency in claims handling, most of them are not in a position to do so because their core claims systems are either too old or not adapted

I found this quote startling on its own merits.  The other area of concern is the high level of agreement at 92%.   I was never able to correlate outdated Workers Comp claims systems with the likelihood that loss costs (therefore Mods).  After reviewing a large number of claims on different systems,  I can understand why this number was so high.

Over the past few years, I have posted very often on why having online access to all claims data is so important.  If your company or organization does not have online access to your data, it may be a prime time to investigate if you have access privileges.  The responsibility to have accurate claims data often rests with the employer.  

Your E-Mods and X-Mods are tied directly to the claims data.  The claims data (Total Incurred) is what is reported to the NCCI, WCIRB, or State Rating Bureau to calculate your Mod.  Consistency is claims handling and the resulting data is becoming ever important as employers look to cut workers comp costs in this tough economy.

Close up of hand typing e-mods and x-mods computer keyboard
Wikimedia Commons – MoD/MOD

Investment company clients along with our employer clients always ask me the #1 concern I have for the Workers Comp market in the future.  One of my main concerns that I always address is the lag time for Workers Comp claim system updates.  How can an adjuster that is accessing five different claims systems actually be that consistent with claims handling?

As I pointed out in the last post,  there are some adjusters that have to access eight claims systems to process a claim.  That is an enormous burden.  The adjusters’ time could be better used elsewhere – plain and simple. 

Why am I so concerned about this one area?  I used to be a systems engineer for two different computer companies.  There are better claims systems out there even if the migration from one system to another is seen as a large barrier.

©J&L Risk Management Inc Copyright Notice



James J Moore - Workers Comp Expert

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Management Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications


Get the latest workers' comp news FREE!

This field is for validation purposes and should be left unchanged.