Experience Modifier Audit

Fox/Everett, in partnership with National Insurance Application Systems (NIAS) and AcuComp, can verify experience modifiers for qualified policyholders: Experience Modification Factor Verifications and Corrections We know from years of historical experience that experience modification factors can often contain calculation errors. NIAS can verify the validity of your present experience modifier and will handle the corrections if necessary and justifiable. NIAS will research your records for clerical errors, missing data, incomplete data and wrong data using software models and manually to uncover any errors which can adversely affect your experience modifier.

Experience Modification Formula

Total Incurred (Open Reserves and Paid Claims)

                   Expected Losses

 Open Reserves & Paid Claims $300,000  $200,000 $100,000  
 Expected Losses $150,000 $150,000 $150,000
 Experience Modifier 2.0 1.34  .67

The modifier is then multiplied by the manual premium set for your industry group. As you can see, the higher the total incurred losses (including reserves), the higher the modifier and the higher the premiums you will pay.


Since 1919, you have had the right to challenge the open reserves within the first six months of your policy period and ask the insurance company to make the reserves reflective of the current file documentation. Don't delay, for consultation... contact us.