For readers of Stop Being Frustrated & Overcharged, Chapter 3
Annual Executive Briefing worksheet
Fill this in once a year, the week your new mod worksheet comes out. Print it, or get the editable spreadsheet that does the math for you.
| Number | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Minimum Mod The lowest your mod could be with no claims at all. Ask your agent, or find it from the worksheet's Expected Losses. | |||
| Actual Mod The mod on your current worksheet. | |||
| Controllable Mod Actual Mod minus Minimum Mod. The share of your premium your claims are adding. | |||
| Premium per point of mod Your premium before the mod is applied, divided by 100. What each 0.01 of mod costs you this year. | |||
| WorkComp Payback Ratio™ Total extra premium a claim costs you over the three renewals it counts, divided by what the carrier paid on it. | |||
| Actual Losses vs. Expected Losses For each year on the worksheet, your claim dollars compared to what the bureau expected for your payroll and classes. |
Dates to put on the calendar
Your data capture date for each policy year, usually six months after that policy expires. Sixty days before it, review every open claim's reserve with the adjuster, and get any agreed change in writing.
Your biggest customers' mod cutoffs, and when each one checks.
WorkComp Payback Ratio is a trademark of David R. Leng.