Industry | Risk Tier | Avg X-Mod | WC Rate/$100 | Claim Freq. | Avg Severity | Actions |
|---|---|---|---|---|---|---|
| Professional Services | Low | 0.85 | $0.45 | 1.2 per 100 | $8,500 | |
| Technology | Low | 0.78 | $0.35 | 0.8 per 100 | $7,200 | |
| Education | Low | 0.88 | $0.95 | 2.0 per 100 | $10,000 | |
| Retail Trade | Medium | 0.95 | $1.80 | 3.2 per 100 | $12,000 | |
| Hospitality | Medium | 1.00 | $2.40 | 4.0 per 100 | $14,000 | |
| Healthcare | High | 1.05 | $2.85 | 5.8 per 100 | $18,500 | |
| Manufacturing | High | 1.02 | $4.20 | 4.5 per 100 | $22,000 | |
| Construction - General | Very High | 1.15 | $8.50 | 8.2 per 100 | $32,000 | |
| Transportation | Very High | 1.12 | $6.80 | 6.5 per 100 | $28,000 | |
| Agriculture | Very High | 1.08 | $7.50 | 7.0 per 100 | $25,000 |
How to Use These Benchmarks
Industry risk benchmarks are essential tools for insurance brokers, PEO underwriters, and risk managers. Use this data to benchmark your clients' workers compensation experience against industry averages and identify opportunities for premium optimization.
The experience modification rate (X-Mod) is the single most important metric for comparing an employer's safety performance against their industry peers. An X-Mod below 1.00 indicates better-than-average claims experience, which translates directly to lower workers compensation premiums.
Claim frequency and severity data help underwriters assess the risk profile of prospective clients and price programs appropriately. High-frequency industries require robust safety programs, while high-severity industries need strong claims management protocols.
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Frequently Asked Questions
What is an experience modification rate (X-Mod)?
The experience modification rate (X-Mod or EMR) is a multiplier applied to an employer's workers compensation premium based on their historical claims experience. An X-Mod of 1.00 is average, below 1.00 indicates better-than-average safety performance, and above 1.00 indicates worse-than-average claims history.
How are industry risk benchmarks calculated?
Industry risk benchmarks are calculated from aggregated workers compensation claims data, NCCI and state bureau rating information, and historical loss experience. Factors include claim frequency (how often claims occur), claim severity (average cost per claim), and experience modification rates across employers in each industry.
What is a good X-Mod for my industry?
A "good" X-Mod varies by industry but generally anything below 0.90 is considered excellent across all industries. The goal is to be below your industry median. For example, a construction company with a 0.95 X-Mod is performing well above average for their high-risk industry.
How can I improve my company's risk benchmark?
Improve your risk profile by implementing comprehensive safety programs, conducting regular workplace inspections, providing employee training, establishing return-to-work programs, and working with your insurance broker to ensure accurate class code assignments and proper claims management.