Experience Mod Spikes – 2025 and Beyond
We have seen a recent trend that increased post-pandemic. Experience Mod spikes have increased during the economic recovery period. Why? Let us look at a few items that may answer most of the questions.
Experience Mods have many names, Mod, EMod, XMod, EMR, Experience Modification Factor. etc. Many articles appear on this website that cover the subject.
The following link contains most of the articles on Experience Mods since 2007.
Trending Experience Mod Spikes
The first consideration starts with your Experience Mod being 18 months old by the time that it kicks into the formula. What? Yes, you need to look at 18 months ago back to 54 months in the past.
Experience Mod spikes come from older data – not what is happening in your company today. But, and this is an important concept – unless an employer changes what it was doing 18 months ago – the Experience Mod spike will likely reoccur for many years.
Safety, Safety, Safety
I know that you have likely heard this before now. Safety cuts comp costs the fastest way possible. When I see a claims-loss run with 20 accidents on it where the accident rate remains the same, one can draw a quick conclusion that the employer needs to institute a higher level of safety.
I know that your company has probably heard the safety mantra before this article. A claims loss run and Experience Mod spike audit may be the best method to develop an action plan to reduce WC costs.
Environmental Factors
The companies that we hear from – very much appreciated – seem to have been smaller companies that were started during the pandemic and have grown or the employer reduced their staff significantly and then brought back furloughed employees or hired new ones.
When new employees and furloughed employees return to work, it may be the first time they have used a machine in a long time, if ever. The accident curve can wreck a Mod quickly. The old saying that 90% of t accidents occur the first time someone uses a tool, process, machine, etc.
NCCI’s video see it here comes from the main rating bureau for the US. Yes, valuable info can be found in the video. Spend 15 minutes – worth it. If your company recently received your Experience Mod sheets and a spike occurred, you are taking the first correct step, paying attention to your Workers Comp program. Now, make your Workers Comp action plan.
