MOD Services

Is your current broker taking proactive steps to help you lower your mod?

We will help you control your mod through a comprehensive risk management plan, which seeks to reduce your workers’ compensation premium by acting on all its contributing factors, from loss control to cost containment.

"You Cannot Change What You Do Not Measure...and measure we do!

Is your current broker taking proactive steps to help you lower your mod?  We will help you control your mod through a comprehensive risk management plan, which seeks to reduce your workers’ compensation premium by acting on all its contributing factors, from loss control to cost containment.

Experience Modification Factor (MOD)

A MOD is a factor developed by measuring the difference between the insured's actual past experience and the expected or actual experience of the class.

This factor may be either a debit or credit and, therefore, will increase or decrease the standard premium in response to past loss experience. When applied to the manual premium, the experience modification produces a premium that is more representative of the actual loss experience of an insured.

An employer with an average experience has a modifier of 1.0 and would pay the manual premium. Employers with poorer loss experience would have modifiers greater than 1.00 and would pay more than manual premium. Those with good experience would have modifiers below 1.00 and pay less than manual premium.

In other words, the MOD is a multiple of the subject premium and it is important to understand the factors that drive these number so that they can be controlled.

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PREMIUM AUDIT REVIEW, ANALYSIS & DISPUTE ASSISTANCE

Once the Final Premium Audit (FPA) has been completed by the carrier, it is sent to the insured to be reviewed, accepted or disputed. Therefore, the FPA is crucial to the accurate promulgation of your experience modification factor and the correct interpretation of your loss pic.

Once the insured accepts the audit, the premium audit is finalized by the insurance carrier and subsequently reported to the rating bureaus to be used in the future promulgation of the experience modification factor.

We will carefully review any adjustments the auditor might make to workers' compensation classification which will impact your final premium and future MOD. Even small errors in classification can cost your company many thousands of dollars. Let's make it right!

UNIT STATISTICAL FORECASTING

Once the insured accepts the audit, the premium audit is finalized by the insurance carrier and subsequently reported to the rating bureaus to be used in the future promulgation of the experience modification factor. This is called a Unit Statistical Filing. The Rating Bureaus use the information submitted by the insurance carrier via the Unit Statistical Filing to promulgate the Experience Modification Factor or MOD.

We take this same information, perform the same analysis, and forecast the experience mod as well for comparative benchmarking purposes. But we do it 3-6 months before the rating bureaus release their numbers. This gives our clients the critical information they need, when they need it, for planning and budgeting purposes.

When the rating bureaus do release their numbers, we address any discrepancies to ensure the proper experience modification factor is applied moving forward.

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EXPERIENCE MODIFICATION ANALYSIS

An Experience MOD is very similar to a credit score. Good credit is rewarded with favorable rates and bad credit is punished with higher rates. The same similarities exist between a Credit Report and an Experience MOD Worksheet.

Each year, we will prepare a comprehensive analysis called an Experience M0dification Analysis used to understand the factors that are affecting your experience mod and contributing to the Increased Cost of Risk (ICOR®). Through this process, we can identify areas and effect changes to save claims dollars.

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RE-EVALUATE YOUR GOALS

Remember, a mod score of 1.0 is only average—the equivalent of a “C” on a report card. Don’t be satisfied with average. Target your cost centers, reduce your mod and achieve your best with loss control.

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ISOLATE AND IMPLEMENT

By refining our focus, we can develop powerful, customized loss control solutions. We make the most of strategic cost-saving opportunities to improve your work comp program and decrease your costs.

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DISCOVER COST DRIVERS

We expose problem areas and understand the full impact of the mod. We examine loss trends to better understand why your losses happen and how to prevent them. From there we can help you explore and act on opportunities for improvement.

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STAY AHEAD OF THE CURVE

Mod analysis can better prepare you for the future. Increase the accuracy of your cost allocation and risk management decisions. Know what to expect by forecasting for future concerns, like changes in payroll or loss trends.