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The Eroding Influence of the Work Comp Experience Mod on Pricing

The Eroding Influence of the Work Comp Experience Mod on Pricing

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Quick Overview

 The experience rating plan and corresponding experience modification factor has served as a "predictive indicator of future losses."  However, we are currently seeing individual insurance companies creating their own underwriting and pricing predictive models.

$129.00

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Duration 1 hour
Location Online Webinar
Formats On-Demand
Instructor Frank PennachioFrank Pennachio

The Workers' Compensation Experience Modification Factor dates to the 1920s, and has served as a tool for individual risk price modification for almost 100 years.  The experience rating plan and corresponding experience modification factor has served as a "predictive indicator of future losses."  However, we are currently seeing individual insurance companies creating their own underwriting and pricing predictive models.  This change is arising from the cost of data storage dropping to below a penny a gigabyte, and computer processing power doubling every two years (Moore's Law).  Thus, the influence of the experience modification factor for underwriting and pricing purposes is eroding.

In this webinar, participants will learn: 

  • A brief history and overview of the experience rating plan;
  • The flaws and challenges of centralized experience rating;
  • What's driving the changes with how insurance companies are modifying their underwriting pricing models;
  • What no longer true, and what agents can no longer honestly say to prospects and clients;
  • Where the experience mod still has significant influence, and what you need to do in that arena.
$129.00
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