Experience Modification Predictions
You have a construction company with a 2/1/2015 renewal date and are bidding on a project that will be starting 3/1/2015. It is now 11/1/2014. If you could tell your customer their mod will likely decrease by 15-points, then they could include that 15-point mod decrease into their insurance costs that part of their bid. It is possible they would win the bid due to that knowledge. Your customer winning a bid is an opportunity at higher premiums in many lines of coverage (workers’ compensation, general liability, builder’s risk, architects & engineers design liability, etc.). All of that equates to higher commissions for you and a happier insured customer.
Conversely, informing your insured business 1-year ahead of time that their mod will increase by 30-40 points will help them prepare for the cash flow. It will also avoid the sticker-shock surprise, or the terrible “why didn’t you tell me this was going to happen” questions during the renewal presentation.