Worker’ Compensation Experience Modification Analysis


Business costs for you customers are always important.  When sales decrease, investments are down and business costs increase.  The ability to minimize the total risk-associated costs can make the difference between whether a year is profitable or unprofitable  for your customer.

Being the agent that educates your customer how to minimize these costs is a positive scenario by:

  • Gaining additional trust of your customer.  Replacing lost business is expensive.  Retaining existing business by providing value-added services is far less expensive
  • Showing your customer how to save money in their workers’ compensation program long-term is a strong way to differentiate yourself from your competition.
  • Showing your customer how to better their workers’ compensation program through various options.  Some insurance companies have more than one rating tier.  Those tiers have different commission percentages.  A different tier could lower their costs but over the next few years, it could also move them into a tier that pays higher commission percentages to you.  For example:  Rating tier graphic
  • Once your customer understands the true cost of their workers’ compensation claims, they pay attention to the causes of injuries.  This helps prevent future losses, which decreases your agency’s loss ratio with carriers and leads to higher contingency incomes.

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