Emod Fundamentals – Perception of Risk

What we’re trying to do here, what did not what necessarily we, what the insurance carriers, what the underwriters trying to do is they’re trying to get an accurate perception of risk.

Accurate perception of risk so that they can price it appropriately so that they can price your premiums appropriately because the insurance companies, if you weren’t aware of this, are in business to make money.

They want to make a profit. So they want to price your workers’ current premium appropriately based on how risky you are based on how risky you are.

Compare to Credit Report

The best, I think, analogy of this, particularly is something that we’re all familiar with is just, like, a credit report.

So a credit report. Let’s say your score is, you know, 515 ▪ versus someone whose score is, you know, 785.

This person at 515 is significantly riskier credit risk than someone’s at 785.

They’ve shown based on their history that they can pay their bills. They could pay them timely.

Perception of Risk

This person has not. They have they’re they’re they’re not they’re not paying their bills as timely, which is just a perception of that risk.

And if they’re going for a car loan or a home loan or business loan or any kind of loan that they’re going for, this person’s likely gonna have a higher rate or they’re not gonna get the loan at all.

This person is gonna get the loan and they’re gonna get a much lower rate.

Michael Stack, CEO of Amaxx LLC, is an expert in workers’ compensation cost containment systems and provides education, training, and consulting to help employers reduce their workers’ compensation costs by 20% to 50%. He is co-author of the #1 selling comprehensive training guide “Your Ultimate Guide to Mastering Workers’ Comp Costs: Reduce Costs 20% to 50%.” Stack is the creator of Injury Management Results (IMR) software and founder of Amaxx Workers’ Comp Training Center. WC Mastery Training teaching injury management best practices such as return to work, communication, claims best practices, medical management, and working with vendors. IMR software simplifies the implementation of these best practices for employers and ties results to a Critical Metrics Dashboard.

Contact: [email protected].

Workers’ Comp Roundup Blog: http://blog.reduceyourworkerscomp.com/

Injury Management Results (IMR) Software: https://imrsoftware.com/

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