Insurance Underwriting Pure Edge Computation

Workers' Compensation Experience Modification Rate (EMR) Calculator

Model the financial impact of workplace safety and claims history on statutory workers' compensation premiums.

Formula: EMR = [Actual Primary + W × Actual Excess + (1 - W) × Expected Excess + Ballast] / Expected Losses

Model Parameters

Actual Primary Losses (< $18,500 Split)

Sum of all claims capped at the $18,500 split point per incident.

Actual Excess Losses (> $18,500 Split)

Sum of losses exceeding the $18,500 split point per claim.

Expected Primary Losses

NCCI expected primary loss benchmark based on payroll classification codes.

Expected Excess Losses

NCCI expected excess loss benchmark based on payroll volume.

Calculation Status

CREDIT

Verified Model

Experience Modification Factor (EMR)

0.943

Benchmark Par: 1.000

Premium Adjustment

-5.7%

Rating: CREDIT

Favorable safety record: Workers' comp premium discounted by 5.7%.