1. Safety – The Gift that keeps on Giving
NC Mid State Safety Council
December 13th, 2016
Lunch Training

3. Are Like Credit Scores From Hell
E-Mods and LDF’s
Are Like Credit Scores From Hell

4. Freebie that has nothing to do with WC
Credit Sesame
Credit Karma
Experian credit score
Free
State Employees Credit Union – Free - Equifax
TransUnion Equifax score
Free

5. There are more confusing subjects
Afghanistan Conflict – viral slide floating around the Internet

7. And The Correct Name is…..
Experience Modification Factor
E-Mod
Ex-Mod
X-Mod
EMR
Mod
All Correct

8. Ground Rules of E-Mods Look-back period is three years
Last year means nothing-yet
Individualizes loss experience
Calculated six months ago

9. North Carolina Rate Bureau www.ncrb.org

10. Large Deductible Still Reported to Rate Bureaus

11. NCCI 5,000 to 15,000

12. Similarities One number represents all Required to obtain credit
Personal Credit Score
E-Mods
One number represents all
Required to obtain credit
Calculation handled by Bureau
Can dispute
Reports cause headaches
Recent past important
One number represents all
Required to obtain WC coverage
Calculation handled by Bureau
Can dispute- somewhat
Reports cause headaches
Recent past MUCH heavier

14. Differences Older mistakes can be disputed and corrected
Credit Score
E-Mod
Older mistakes can be disputed and corrected
You are almost always out of luck

15. Differences Your efforts will show immediate results
Credit Score
E-Mod
Your efforts will show immediate results
Wait for two to five years for results Safety & Risk Managers

16. Differences Your credit score shows up-to-date results
E-Mod
Your credit score shows up-to-date results
Unit Statistical Date- Extremely Important

17. Unit Statistical Date Six months after policy renewal
July 1st renewal = January 1st Unit Stat Date
January 1st renewal = July 1st Unit Stat Date
Huge time waster- massive review just before renewal date

18. BUDGET July 1st renewal = January 1st Unit Stat Date
January 2nd – next years E-Mod can be calculated
April 20th – May 1st E-Mod published by NCRB/NCCI
Extra 100+ days to budget

19. LOSS DEVELOPMENT FACTOR (LDF)
HOW MANY?

20. Differences The credit bureaus only have one version of your score
Credit Score
LDF
The credit bureaus only have one version of your score
Can vary greatly depending on inputs

21. How To Obtain LDF Hand calculate – why?
Software – Specific Software, ZyWave, etc.
Consultants/Actuaries
All Three – Inputs???

22. We are completely out of the Workers Compensation or E-Mod system

23. Workers Compensation System?
One or more adjusters spending directly out of your account or budget = More
Outliers or no buffer
Same dynamics as E-Mod System
E-Mod >> LDF

24. IBNR
Incurred But Not Reported

25. Synthetic E-Mods
Assist self insureds/large deductibles to analyze regular insurance policy considerations
Nothing wrong with switching back
Can use to compare with LDF’s
Synth-Mods®

26. Finding Blog Articles

27. 1,620 Article Blog
– presentation with links to articles that I referenced
Six Keys To Cutting WC Costs
James J Moore, AIC, MBA, ChFC, ARM

28. NORTH CAROLINA RATE BUREAU SCHEDULED RATING PLAN
This plan is available to any risk whose estimated annual standard premium is equal to or greater than the minimum for experience rating eligibility.
Subject to a maximum modification of a 25% credit or a 25% debit, the premium for a risk may be modified in accordance with the following Schedule Rating Table to reflect characteristics of the risk tat are not reflected in its experience (Note: The “Risk Characteristics” examples given to evaluate the positive or negative conditions of a risk may be interpreted as “including, but not limited to” those examples):

29. SCHEDULE RATING TABLE Premises 5% to 5%
Physical condition, preventive maintenance, hazards controlled, housekeeping
Classification Peculiarities 5% to 5%
Technology or methodology variations, exposure identification, employee distribution, employee turnover and interchange
Health and Medical 10% to 10%
First aid or medical assistance, emergency or disaster plans, return-to-work policy, alcohol or substance abuse programs, industrial hygiene and ergonomics
Safety and Equipment 10% to 10%
Type and condition, guarding, personal protective equipment, maintenance
Employees 5% to 5%
Selection, training, experience, motivation, supervision
Management 10% to 10%
Commitment to workplace safety, involvement in loss control programs, cooperation with insurer
Safety Organization 5% to 5%
Accident investigation and analysis, record keeping, safety committee organization and effectiveness