Experience Modification Factors are also known as X-Mod and E-Mod are critical to cutting your company’s Workers Compensation premiums. The E-Mods are calculated by NCCI, WCIRB, or an independent Rating Bureau using UNISTAT data supplied by the insurance carrier.
Many people refer to the Experience Mod as the E-Mod X-Mod or EMR. The terms all refer to the same number. They are completely interchangeable.
The E-Mod X-Mod number can cost an unsafe employer a large debit to their insurance budgets. The number ranges from the lowest I have seen of .45 to 3.20. One can look at those two Mods as a 55% discount or a 320% additional cost.
Safety remains the most influential way to reduce a high Mod or sustain a low one. Many times, companies do not allow enough patience in reducing a high Mod.
One can think of three different kinds of EMRs –
1.01 and higher is called a debit Mod
1.00 is neutral Modification Factor
.99 and lower is a Credit Mod
Disputing a Mod requires finding one of the Total Incurred figures from the Mod Sheets to be inaccurate. This does happen more than one may think.
The E-Mods are calculated six months before policy renewal using the last three years’ claims data as reported on the UNISTAT Date . The claims data used is usually from 18 to 54 months in the past.
The calculation is totally retrospective in nature. An accident that occurs today may show up in an employer’s insurance policy bill calculations for 4 – 5 years.
The same type of employers is compared using Classification Codes to describe the employer’s job functions.
One can agree or disagree with the rating bureau’s and carrier’s use of the system. The E-Mod X-Mod system is the one that is in place presently and for years in the future.
Reader’s Question on Minimum Experience Mod Premium When the J&L article or newsletter readers email a question, I always try to answer the question as
#1 Question We Receive Now – Where Is Workers Comp Pandemic Data? Every few months, I try to stop and compile similarities in questions that
Workers Comp Budgeting Mistake – Sometimes The Numbers Aren’t The Numbers A frequent workers comp budgeting mistake I see at least quarterly is when a
Having Zero Claims For Current Policy Year = Instant Savings? Probably Not I came across this situation recently while reviewing a loss run with an
New York Workers Comp Experience Mods Now Independent – What That Means Combining many states into a single number is one of the great time-saving
WCIRB Over-reserving Correction – Rating Bureau Helps Out Employers – Wow! The Webinar Info Is at the bottom of this article California’s Workers’ Comp Insurance
Workers Comp Claim Development – Why The Six Month Delay? The Workers Comp claim development process has frustrated more than a few insureds or agents.
Upset Reader Says Experience Mod Increases – Loss Run Had No Changes One noticeable complaint tread from our article and newsletter readers recently comes from
What Are Contingent Experience Mods? Last week, I wrote a somewhat controversial article questioning whether insurance carriers should be fined for reporting Mods late. I
California WCIRB Webinar Discusses XMod Formula Update For 2019 California’s WCIRB presented a great webinar yesterday on the effects of the XMod formula update. Check
Stabilizing Value – Rating Bureaus Provide a Break of Sorts The Stabilizing Value in Workers Compensation Rating Bureau Experience Modification Factor Worksheets saves companies premiums
The Experience Mod Calculation Shortcut – Back To Basics Lately, Experience Mod calculation questions have come into our offices at a very high rate compared
Experience Mod Of 1.01 Can Negate Large Private or Government Contracts An Experience Mod of 1.01 does not necessarily indicate that a company operates unsafely.
Experience Mod Question From Article Reader The Experience Mod system- while seemingly complicated and full of penalties – has a built in algorithm that keeps
Work Comp Wellness Plans – Should Employers Receive An Incentive? Should Work Comp wellness plans mimic the recent Obama Administration action on health wellness plans?
E-Mods LDFs Are Like Credit Scores Are E-Mods LDFs like credit scores from hell? Over the past few months, I have presented this material at
Bad Developments With Mod Increases To Over 1.0 When a company’s Mod increases to over 1.0, it can rarely have no other effect to a
My EMod (XMod) – When Can You Obtain It? How do I obtain my Emod (Experience Modification Factor0? This question was emailed from amedium-sized company
Sharp E-Mod Increases – Five Reasons We have had many inquiries on employers’ E-Mod increases (X-Mod). Some have increased very significantly in just one year.
Discounted Experience Mod Likely A Rating Bureau Adjustment We received this email over the weekend concerning a discounted experience mod. The West Virginia company found
Cutting Workers Comp Costs Has New Key Added For Clarity The subject of cutting workers comp costs added an obvious 6th addition to the list.
California’s Rating Bureau (WCIRB) The WCRIB – California’s Workers Compensation Rating Bureau (similar to NCCI) has written quite a few great plain-language documents on explaining
WCIRB ‘s New Mod Formula – Small Employers Must Enact Safety Programs Now WCRIB’s new mod formula will heavy affect small employers with a less
Claim Severity – Where One Claim Can Ruin Your Mod The Claim Severity vs. Frequency Effect can result from one claim. One severe claim cannot
E-Mods X-Mods of 1.0 Needed To Bid On Government Contracts E-Mods X-Mods risk concerns have caused many governmental units to now require a Mod at
Late Reported Claims Info by Carrier Can Cause E-Mod Increase Increased Mod and Premium were due to Late Reported Claims Info from insurance carrier employer.
Most Basic Mod Formula The most Basic Mod formula how is it calculated? We receive a large number of calls and emailed questions on how
The Experience Modification Factor Basics A great Experience Modification Factor Factor email came in last week.. Our E-Mod has changed a large number of times
California Employer Question A California employer emailed in this question last weekend. “We are a medium-sized employer (dry cleaner) in central California. Our Experience
Experience Mod Reduction Plans Can Be Preservation Plans The Experience Mod Reduction Plans – are they really worth it ? Yesterday, I was presented with
Auditing Workers Comp EMods or XMods – Tricky Stuff By Auditing Workers Comp EMods or XMods, you may find premium savings or you could blow
Presentation Highlights – Safety and EMods Are Very Related How Safety and EMods intermingle was the basis for most of the highlights from my presentation. The
The Large Loss Caps Effect On Premiums Capping the large losses incurred by an employer is one way for a State Rating Bureau or NCCI
How Is the E-Mod or X-Mod Calculated? My E-Mod or X-Mod how it is calculated? X-Mod / E-Mod questions are becoming the most popular questions
An Acceptable E-Mod (X-Mod) Usually 1.0 The question is what is an Acceptable E-Mod (X-Mod). The level of questions on XMods/EMods usually increases this time
California’s WCIRB XMods Resemble NCCI E-Mods Now Are California’s WCIRB XMods changing to be more like NCCI‘s EMod system ? Will X-mods from CA’s WCIRB
Emod Changes – A Correction To One Figure The Emod Changes articles that I wrote last week had a slight error. The E-Mod/X-Mod changes that
Difficult to Bid On Contracts With A High X-Mod Should we still bid on contracts with a high X-Mod? I received this question two weeks
More Changes Ahead – E-Mod Calculation Last week, I discussed the upcoming changes to the E-Mod calculation and gave an example. One area I wanted to
NCCI Changes the Experience Mod Calculation In my last post, I discussed the upcoming changes to the E-Mod calculation. The NCCI changes may look simple,
Experience Mods Decrease When NCCI Increases Primary Loss? The NCCI had reported Experience Mods will decrease for certain employers. One of the new twists
WC Program – Top Five Ways To Gauge Success Below are the top five ways to assess the success of your Workers Comp program. In
10 Ways To Detect Workers Comp Program Failure Spiral Your WC program failure spiral usually cannot be reversed after a few years of spinning out
Similarities – E-Mods X-Mods EMR And Credit Score A few weeks ago, I posted on E-Mods X-Mods EMR. I received a large number of questions on
Workers Comp Success Bottom Line Measurements Workers Comp success (or failure) bottom line measurements are readily available for employers. I have read on a few
Three Ways To Penalize Your Company’s Experience Mods Actually, E-Mods (X-Mod, Ex-Mods) do not actually directly penalize your company’s Workers Compensation premiums. However, there are
The Experience Mod System’s Hidden Good Side The Experience Mod system can actually silently help your company. The Workers Compensation Experience Modification Factor (E-Mod/X-Mod/Ex-Mod) system
E-Mod (Ex-Mod) Review Of Outstanding Reserves An E-Mod (Ex-Mod) review is something to leave to the experts. Usually, approximately one third of the Total
Reader Question On E-Mod X-Mod Ex-Mod California Yesterday I received a question on Workers Comp E-Mod X-Mod Ex-Mod in California. Recently, our California Ex Mod
Cutting Cost Of Workers Comp Policy Just Renewed Your workers comp policy just renewed recently. This is a critical time in the cost cutting. This
Term Of The Day – D Ratio A D Ratio is a variable used in a workers compensation experience rating plan. It is applied to
Experience Modification Factor E-Mod Can Be Debit, Credit or Neutral There has been much discussion in the last week on the Experience Modification Factor (E-Mod
Experience Modification Factor (EMod/X-Mod) Is Like A Credit Score The Experience Modification Factor can be thought of as a credit score. There have been many
E-Mod X-Mod Forecasting Errors Due To Unit Stat Date Workers Comp E-Mod X-Mod calculating errors.Recently, I had come across some work from two so called
How Are WC Premiums Calculated? How are your WC premiums calculated? Your premiums are calculated from a formula that has no less than 34 steps
The Experience Mod Equation Revealed The Experience Mod equation – does it look complicated? I have been asked often how the Workers Compensation E-Mod/X-Mod is
E-Mod And X-Mod System I have posted very often about how your company’s E-Mod /X-Mod can make or break your Workers Compensation insurance budget. One
Part IV – Experience Mod Calculation From A Small Claim Value A small claim value can end up costing your company dearly. From the last
A Small Claim Can Be Very Expensive Per Unit Please see my post from September 27th on small claim. This is part two of that
NCCI Rules On Calculating E-Mod One of the newer NCCI rules that applies to policy renewals and the way the E-Mod is calculated was a
Not All Workers Comp Accidents Affect MOD Immediately Did accidents affect MOD in my Workers Comp policy year? Is it true that what happened in
Employer’s E-Mod Spiked Over Two Years Our E-Mod has increased quite significantly from .8 to 1.29 over two years’ time. What could have caused this
California X-Mod Calculation Sheets A Question From One of Our Readers – In one of your old posts, you went through how Workers Comp E-Mods
Correction To Your E-Mod Can Be Difficult and Delayed Your E-Mod can be corrected. The deck is stacked against you when you want to correct
Business Credit Score Part II What is The Secret Business Credit Score? It is your Experience Modification Factor (E-Mod, Mod, X-Mod, etc). During all of my
North Carolina Mid State Safety Council I presented yesterday at the North Carolina Mid State Safety Council’s conference on Ways to Cut Workers Compensation Costs.
Can One Claim Wreck – Completely Ruin Your Workers Comp Premium Just one claim does not wreck an E-Mod. My company has had a great
Workers Comp Rates Go Down Slowly – Be Patient A reader poses a great question on Workers Comp rates. My business had three bad years
Claims Affect Premiums For Multiple Years How do claims affect premiums for my company? This is a question we receive very often. The first thing
A Safety Person vs. The X-Mod or E-Mod Is there one number that a safety person should be the most concerned with in their job?
Most Workers Comp E-Mods And Loss Runs Misconceptions The Workers Comp E-Mods and Loss Runs misconceptions that we have seen are: Only the open claims
Experience Modification Factor Calculations The Experience Modification Factor calculations consist of four main areas. As I mentioned in a prior post, your Workers Comp premium