This case study showcases how Kapnick helped a precision machine component manufacturer in reducing their experience modification rate. By implementing proactive safety measures, the company significantly lowered workers’ compensation costs and improved profitability.
THE PROBLEM
A precision machine component manufacturer faced skyrocketing workers’ compensation claims, driving their experience modification rate to 1.63. The frequency and severity of claims caused their premium to rise, cutting into profit margins and stalling growth.
THE SOLUTION
Proactive Steps for Reducing Experience Modification Rate
At Kapnick, we focus on staying ahead. We use predictive modeling to forecast potential experience modification rates and conduct targeted claims analysis to identify cost drivers.
For this client, Kapnick Risk Solutions implemented several initiatives to reduce risks and foster a culture of safety:
- Claim review meetings
- Safety meetings
- Development of a safety committee
- Safety training for all employees
- Regular site visits and walkthroughs
- Ergonomic assessments
- Analytics of workers’ compensation claim costs
THE NUMBERS
Four years later, these safety practices remain in place. The company’s renewal premium has been reduced by 48%, even with a 16% increase in payroll. Their experience modification rate has dropped to .87, showcasing the long-term impact of Kapnick’s solutions.
