The process of calculating the experience modification factor is complex, but the underlying theory and purpose of the formula is straightforward. Your company’s actual losses are compared to its expected losses by industry type. The formula incorporates factors that account for company size, unexpected large losses and the difference between loss frequency and loss severity to achieve a balance between fairness and accountability.
GDI calculates the current and upcoming mod factors for our clients, then makes plans to help reduce the mod by adding OSHA compliant safety programs. GDI also have a 5 step proven program to reduce your Mod. What is your current Brokers Plan?
To continue reading newsletter (How can you control your mod?)