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How Does NCCI Calculate Our Mod – Reader Question


How Does NCCI Calculate Mods – 33 Steps

How does NCCI calculate our Mod ?   This is a blog/newsletter question that we receive almost weekly.

This reader originally performed a Google search to find us.  We love the Google or Loogle (Hot Tub Time Machine).

Picture of Hand Holding Calculator with NCCI Calculate Concept

The NCCI (National Council on Compensation Insurance) is located in Boca Raton Florida.

NCCI is not the only rating bureau.   There are many independent state bureaus – the largest being the WCIRB (California).   The formulas are quite similar.

The actual formal word is promulgation instead of calculation. The graphic at the top is not the Mod formula.

There are basically 33+ steps to calculating your E-Mod.   I think we can actually break it down to a simple formula instead of an E-Mod (X-Mod) calculation that may cause your head to spin.

The E-Mod formula can be thought of as :

E-Mod = Your Company’s Actual Claims Incurred / Similar Company’s Expected Claims Incurred  

The NCCI or your respective rating bureau has many more tweaks in promulgating your E-Mod.    Almost all insurance (auto, home, life, etc.) is analyzed using this formula.  >>>> Actual Results / Expected Results 

Woman Hand Doing NCCI Calculate Expenses

There are many articles on this blog concerning Mods.  I will not repeat them here.

Your company’s classification codes sometimes referred to as work comp codes are how your company is compared to another company in the same state(s) your company conducts business in respectively.

The best way to keep the actual results lower (top part of formula) is to have a full safety program or a safety consultant.

Mods have crept back into the insurance conversations recently.  A large %  of companies were paying attention to the new healthcare regulations while safety and WC were put on the back burner, so to speak.

I hope that I answered the – How Does The NCCI Calculate Our Mod – question with a simple, straightforward answer.

There are hundreds of techniques to lower your Mod – most of them covered in this blog.   Search, find, and print whatever will help your company.

If it is not here, or you cannot find it, call or email me.

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Experience Mod Predictions Accurate?

Experience Mod Predictions – Accuracy Depends on Who/Whom You Ask Most Experience Mod predictions can be a tedious process that has cofounded most people working

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


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