Modification factor

{
  "id": "MLC-T-INS-002213",
  "term": "Modification factor",
  "field": "Insurance and risk management",
  "definition": "A numerical factor, also known as an experience modification rate (EMR), applied to an employer's workers' compensation insurance premium to reflect their individual loss history. It is calculated by a rating bureau based on the employer's past payroll and claims data compared to industry averages. A factor below 1.0 indicates better-than-average experience, resulting in a premium credit, while a factor above 1.0 results in a debit.",
  "subject": "Workers Compensation",
  "url": "https://mlchart.com/terminology/insurance/modification-factor/"
}