Experience Modification Factors

As a result of his employment as a Risk Manager, Mr. Underdown has experience working with the development and application of Experience Modification Factors (E-Mod). He maintains that a look at the emod for a specific company gives a good insight into the management of the company. Since emods are developed for specific industry codes, an emod of over 1.0 indicates the management of that particular company is doing worse that the industry average.