Workers Compensation Experience Rating


Experience rating compares an insured's actual losses over the experience rating period to expected losses for businesses in its industry group. From this comparison, a modification factor is developed and applies to an insured's standard workers compensation premium to reflect that insured's actual loss experience. This modifier can have a significant impact on the premium the insured pays.

This course puts experience rating into perspective and then explores how experience mods are calculated and how organizations can reduce costs by controlling their experience modification.

Learning Objectives

Upon completion of this course, students should be able to:

  • recognize the role experience rating plays in determining the premium an insured must pay for its workers compensation insurance
  • identify the sources of data used in experience rating and the effect of each item in the modification calculation
  • recognize the changes that may affect an organization's experience rating modification
  • identify steps a business can take to control its experience modification

Designed For

Property/casualty insurance producers
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