FAQ: Our ex-mod just came out, so aren’t we stuck until next year?
No, no, no.
The reason for the harsh response here is that the answer to the question is, in fact, “no,” but beyond that, it’s the wrong way to approach the whole situation. Of course, you already got your ex-mod for the year. That’s why we’re talking to you about it.
Now, let me pause for a second. I know I got a little fired up there, but this is actually a very common question when we reach out to businesses with high ex-mods. If this was your question, I get it. It’s usually coming from a place of helplessness or hopelessness, and usually the people that ask this feel like they have tried everything to no avail. They’ll just have to deal with whatever number the WCIRB gives them or go out of business. They’re just… stuck.
But here’s the deal: You’re experience modification rate is controllable, and you don’t always have to wait until next year to see results.
Your Experience Modification Rate Is Controllable
This is what we’re talking about when we say that the approach is all wrong. If you want to take control of your ex-mod, you can’t just sit back, wait for next year, and hope your problem goes away. You have to be proactive.
Your ex-mod is simply the answer to a math problem. The WCIRB puts in your payroll numbers, claims frequency, and claims cost from the past 4 years, excludes the most recent of those years, and your ex-mod comes out on the other side. If you can come up with a strategy for controlling the numbers on the left side of the equation, you can also control the number on the right side over the long haul.
In other words, if you start right now, it may take some time to see results, but at least you won’t simply be stumbling in and out of ex-mod trouble and hoping for the best.
But WAIT! There’s MORE!
You Don’t Always Have To Wait Until Next Year To See Results
We talked about the long term strategy, but there’s nothing that can be done about the ex-mod that your business has this year, right?
Well, it turns out that that’s not entirely true.
A few years back, a third-party actuarial study was done on the process… y’know, to make sure that we could actually do what we said we could.
First of all, we can.
Secondly, and more importantly for this discussion, the study found that when your insurance carrier gives your information to the WCIRB for the ex-mod equation, 70% of the time there are errors in that data. In case you missed that, that means that 7 out of every 10 experience mods are based off of wrong information, which means you may have an ex-mod that you shouldn’t have.
Here at Whiteboard, we’re able to find those errors and correct them, which has an immediate impact on your ex-mod by way of revision AND can even get you money back if you’ve been paying for a mod that was too high.
So here’s the bottom line: You’re not stuck with your experience modification, and you most definitely should not just wait to see what you get next year. Get in touch with us, and we can figure out the best strategy for how to control your ex-mod right now and in every future year.