Underwriters now have thousands of data points that help them build predictive models, which may be more reliable for workers' comp pricing than traditional experience modification factors. (Photo: Shutterstock)

There was a time during my 25-plus year career as an insurance agent, and in the early days of my work as a consultant and trainer to insurance agents, that I would assert, “Your Experience Modification is x, and I will help you lower it to y, and you will save this many dollars.” With few exceptions, I’ve found this statement is no longer correct. Yet, too many insurance agents, and some consultants and trainers, are unwilling to let go of an outdated era and method of worker’s comp insurance pricing. 

Insurance agents who continue to cling to and spread this zombie idea may be ill-informed, which is understandable as contrary positions are still present in the marketplace. However, some agents and their consultants don’t want to know any different because they are familiar and comfortable with this type of sales approach, and employers are not aware of the changes to pricing models … yet. It’s long past time to put this specious sales approach to rest and move on to more effective and valuable ways of assisting employers and employees.   

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