The Challenge

Our client was in the Minnesota State Fund for Workers' Compensation. Their experience modification factor had skyrocketed to 1.92 due to claims frequency and the State Fund's inability to manage and close the claims in a timely manner. Equity Risk Partners was asked to:

• Get them out of the State Fund
• Find an "A" rated carrier with excellent service & loss control capabilities
• Provide an action plan to lower their experience modification factor
• Lower their overall workers' compensation cost

Our Solution

Equity Risk Partners partnered with the State Fund to review each and every open claim for the last three years. We did this to:

• Make our client more attractive to prospective insurers
• Make sure the claims were as low as possible to ensure the lowest possible experience modification factor at renewal

Our efforts resulted in a more than $200,000 reduction in claims in a matter of weeks. The modification factor will go from 1.92 to 1.64 in 2006.

Our client now has:

• Overall cost savings
• An insurer rated "A+"
• A dedicated claims adjuster and unsurpassed on-line claims management
• Quarterly loss control