Under workers' compensation, experience modification factor is based on

Insurer loss experience refers to the overall claims history and loss ratios of the insurance company itself, rather than the individual employer. This factor is not used in calculating the experience modification factor, which focuses specifically on the employer’s own claims history.

While an employer’s safety program is important for preventing workplace injuries and may influence future loss experience, it is not directly used to compute the experience modification factor. The EMF is solely based on actual loss experience, not on preventive measures or safety initiatives that may be in place.

The statewide average rate is a benchmark that may be used in setting insurance premiums but does not directly relate to the employer's individual experience. The experience modification factor is intended to reflect how an individual employer’s loss experience compares to the average for similar businesses, rather than relying on a general statewide average.