Real
estate client saves $176,000 and lowers Experience Mod
Insured
A large residential property company with more than 5,800 units encompassing
46 high-rise buildings and over 153 acres.
Situation
The company was using a large insurance agency/broker that was lax in managing
the company’s claims, resulting in a high Experience Mod of 1.65. The broker
was not pro-active in managing past claims; no annual modification or claims
reviews had been done since 2002. With a breakdown in communication and a sense
that service was inadequate, the customer approached Certified WorkComp Advisors
(CWCAs) to review the policy and examine the claims.
Assessment
CWCAs entered the Mod worksheets into the Modmaster software to compare company
loss-runs with the claims on the Experience Modification worksheet, studying
different claim situations and claim changes to identify problems.
Solution
The CWCAs were able to document a number of errors that resulted in a revised
Experience Mod from the past two years on some claims, and as far back as six
years on others.
Result
The work resulted in credit revisions for the 2002, 2003, 2008 and 2009 policy
years. The 2002-year had two claims settled, which lowered the Mod from 1.65
to 1.56, saving $73,003. The 2003-year had three claims that were adjusted, reducing
the Mod from 1.78 to 1.65, saving $84,245. In 2008, there were two claims from
2006 that closed for $0, plus two clerical errors, which brought the Mod down
from 1.26 to 1.23, returning $14,773. And for the 2009-year, there was one claim
adjusted, resulting in a lowering of the Mod from 1.33 to 1.32 and a savings
of $4,602.
Overall, the CWCAs were able to save more than $176,000.
