Premium wise, but finance foolish



“I can save you 30% off your insurance premium?” Have you heard this before?

A competitor recently advised our client they could ‘save’ them over $200,000 on their annual premium by simply increasing their retention.

What was our answer? “Yes, that’s true, but ...”

And that gave us an opening to prove that we had our client’s best interests in mind, we conducted a complete risk analysis, calculated risk scenarios that saved the client financial resources by modeling relative to their historical claim trends and balance sheet. If they had increased to the recommended retention, they would have saved $200,000 in the work comp premium, but their required Letter of Credit would have increased to almost equal the premium savings! But wait, there was more. If they had implemented the alternative plan only a year prior, they would have paid out of pocket an additional $250,000+ in claim expenses, and also exposed their organization to millions in additional potential losses.

From Chinese philosophy, we know that yin and yang interactions influence the destinies of all things. So, if we put our clients’ destinies before our own, we build loyalty and add value. Ultimately, when our clients experience a claim, and they will, then I think our role is to walk them back off the ledge and remind them that we have already anticipated this outcome, and we’ve got this under control.

I have one last question: “How can we help?”


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