The following is a case study based on real Kapnick clients about the impact a high experience modification rate was having on workers’ compensation premium costs.
A precision machine component manufacturer had issues with their workers’ compensation claims increasing at record levels driving their experience modification rate to 1.63. The frequency and severity of workers’ compensation claims were causing the company’s premium to rise, cutting into profit margins and causing growth stagnation.
Kapnick Risk Solutions implemented a series of changes to reduce risks and create a culture of safety.
- Claim review meetings
- Safety meetings
- The development of a safety committee
- Safety training for all employees
- Regular site visits and walkthroughs
- Ergonomic assessments
- Analytics of workers’ compensation claim costs
Four years after these initiatives, these safety practices are still in place, and the company’s renewal premium has been reduced by 48% despite payroll increasing by 16%. Their experience modification rate has been reduced to .87.