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George Nackley
President,
The Pennsylvania Workers' Compensation Resource Center,
a Division of Joyce Insurance
Group.
Nationally Recognized Educator, Speaker, and Consultant
Joyce Insurance Group
9 North Main Street, Pittston, PA
18640
Phone: 1-888-368-5420 ext. 11503
Fax: 570-586-0289
gnackley@joyceinsurance.com
Over the
past 26 years, George Nackley, has become a leading figure in
the insurance industry. During his prominent career, he has
successfully met the needs of all aspects of commercial and
personal insurance, management, training and claims. His focus
on workers’ compensation policies and procedures, however, sets
him apart from other insurance consultants. George pre-evaluates
businesses to qualify eligibility then conducts a complete risk
analysis of businesses’ personnel and operations. His complete
review of loss history and individual injuries contributes to
overall customer satisfaction.
George is a graduate of Kings College and a member of the
Professional Insurance Agents Association and former President of
Northeastern PA Claims Association. He has spoken to groups in
Pennsylvania and Delaware on the subjects of time management,
workflow and property evaluation and assessment.
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Q: What is
an Experience Mod and how does it affect my workers' compensation
premium?
Simply put, your experience modification is the comparison of your
losses to the losses expected of an employer like you. The
calculation considers your employment classification and your
payroll in the comparison.
Poorer experience has direct and indirect cost. Indirect costs
exceed direct costs by 4:1 ratio. Therefore, you should
realize and avoid treating Workers' Compensation as a "cost of doing
business."
Q:
Who calculates the workers compensation experience
modification factor?
The
Pennsylvania Compensation Rating Bureau (PCRB) is a a
not-for-profit rating, statistical and data management
services organization. They are funded by a variety of
insurance organizations and companies to act as a central
source of data on workers compensation. Part of their
responsibility is the calculation of experience modification
data. They receive claim and audit information from your
insurance company and calculate your experience mod.
Q:
What data goes into the experience mod calculation?
The experience mod uses your loss data and your
payrolls. The loss data is reported to the appropriate
rating bureau (PCRB) approximately
the half-way point in your policy year. Losses include both
amounts paid and claim reserves. Your payroll data comes
from the audits performed by your insurance company at the
end of every policy period.
Experience rating and actual characteristics of individual
employers are determined over time, usually three years.
Therefore, you need to continually evaluate past claims
reserves for accuracy.
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