County's workers' compensation renewal shows improved loss history; proposed premium about $906,005
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Summary
Insurance brokers and Marsh & McLennan reported a declining experience-mod (e-mod) and lower incurred losses, recommending continued safety focus as renewal premium is proposed at $906,005.26 for July 1 effective date.
Marsh & McLennan representatives briefed Flathead County commissioners on the Montana State Fund workers' compensation renewal and reported a marked improvement in claims costs and the county's experience-mod factor.
Doctor Vivian Marsh McLennan and Kim Thomas presented the renewal proposal effective July 1, 2025, and said the county's experience-mod (e-mod) is projected at 1.35 for the renewal year, down from 1.52 in 2024–25 and 1.02 the year before that. The presenters noted a large spike in incurred losses in policy year 2022 (about $1,056,000) followed by $440,003 in 2023 and about $114,370 to date for the 2024 policy year.
Marsh McLennan said the reduction in indemnity and total losses is a principal reason for the improved e-mod and that continued attention to timely reporting, return-to-work and safety culture remains critical. The firm calculated a proposed premium of $906,005.26 based on estimated payroll increases of about 13.3 percent and overall remit-rate and e-mod decreases.
Presenters also reminded the board that the county received dividends from the State Fund in prior years: approximately $137,500 (policy year 2022), $196,002.56 (2023) and $193,018 (2024). Doc McLennan said she will follow up with data on average days-to-report claims three years ago versus today.
Commissioners and Marsh & McLennan discussed class-code remit-rate changes and pool performance; the presenters attributed favorable county results to improved reporting and return-to-work efforts coordinated with county leadership and HR.