Wellesley, MA -(BusinessWire)- As of 2013, the way that workers’ compensation insurance experience modification factors are calculated has been changed for employers in Connecticut, Maine and New Hampshire. This is the first change in procedures in more than 20 years and it will have a significant impact on employers with higher-than-average workers’ compensation losses. As the name implies, experience modification is the mechanism that insurers use to factor an employer’s actual historical loss experience in the premium calculation. The new calculation is designed to collect more premium from insureds with relatively high losses, while at the same time reducing premiums for insureds with low losses.
Changes are scheduled to be rolled out to other New England states later this year. The new procedures will be implemented in Vermont on April 1, 2013 and Rhode Island on June 1, 2013. The date for Massachusetts implementation has not yet been announced, but is anticipated to kick in sometime in early 2014.
Renaissance Alliance has developed a whitepaper to explain what insurance agents and employers need to know about these important changes.
The complimentary whitepaper is available for download here: Renaissance Alliance Ex-Mod Calculation Whitepaper.
Source: BusinessWire