consultative insurance broker
TRANSCRIPT
CONSULTATIVE INSURANCE BROKER REDUCE FINANCIAL LEAKAGE | IMPROVE BOTTOM LINE
PAY ATTENTION IF YOU WANT TO LOWER EXPENSES, INCREASE THE BOTTOM LINE AND GROW YOUR VALUATION
4 WAYS TO BUY INSURANCE:
RELATIONSHIPS SPREADSHEET BROKER SELECTION BUSINESS KPIs
METHOD #1 PEOPLE LIKE TO BUY FROM PEOPLE THEY LIKE!
RELATIONSHIPS
TOP 10 CARRIERS WRITE 61% OF THE PREMIUM WRITTEN BY THE TOP 50 CARRIERS
61%39%
TOP 10 GLOBAL REINSURERS WRITE 68% OF PREMIUM WRITTEN BY TOP 50
68%
32%
COME ON, HOW LARGE COULD THE PREMIUM DIFFERENCE BE? WHY NOT BUY FROM A …
CLUB MEMBER
GOLF BUDDY
FAMILY MEMBER
QUESTION #1: DOES YOUR PERSONAL RELATIONSHIP PRODUCE THE BEST RESULTS FOR YOUR BUSINESS?
METHOD #2 BID IT OUT!
SPREADSHEET
DEVELOP BID SPECS COMPARE APPLES TO APPLES ASSIGN MARKETS OBTAIN QUOTES SPREADSHEET SELECT LOW PRICED CARRIER
13
TOP 10 REVIEW:
61%39%
68%
32%
CARRIERS REINSURERS
LOSSES
LOSS ADJUSTMENT
EXPENSE
EXPENSE
PROFITS
LOSSES
LOSS ADJUSTMENT
EXPENSE
PROFITS
EXPENSE
NEGOTIATION AREA
SAVINGS? NOT REALLY UNLESS YOUR AGENT HAS BEEN SKATING AND NOT PAYING ATTENTION
OR A NEW PLAYER DROPS INTO THE MARKETPLACE
QUESTION #2: DO YOU REALLY WANT THE LOW COST CARRIER TO DECIDE WHO’LL BE YOUR BROKER?
METHOD #3 EVALUATE AND DECIDE
BROKER SELECTION
CARRIER SELECTION ABILITY TO NEGOTIATE KNOWLEDGE OF YOUR INDUSTRY COVERAGE REVIEW QUICK RETURN OF CALLS CONTRACT REVIEWS CERTIFICATES OF INSURANCE AUTO I.D. CARDS TIMELY RENEWALS POLICY ISSUANCE TEAM OF WELL DRESSED PEOPLE
BEST IN SHOW
QUESTION #3: AREN’T THESE “ME TOO” SERVICES
AND SHOULDN’T THEY BE THE PRICE OF ADMISSION?
METHOD #4 BUSINESS ANALYSIS LIKE ANY OTHER DECISION
BUSINESS KYI’s
IT’S ABOUT THE INCOME STATEMENT! HOW WILL THE DECISION DECREASE YOUR EXPENSE AND GROW YOUR BOTTOM LINE?
LOSSES ADMINISTRATIVE
EXPENSE RISK FINANCING
LOSSES
LOSS ADJUSTMENT
EXPENSE
EXPENSE
PROFITS
LOSSES
LOSS ADJUSTMENT
EXPENSE
PROFITS
EXPENSE
AREA OF IMPACT
DIRECT LOSS COSTS: DEDUCTIBLE EXPENSE SELF INSURED RETENTION ALLOCATED ADJUSTMENT EXPENSE UNINSURED LOSSES
LOSSES INDIRECT LOSSES
EXPENSE RISK FINANCING
DIRECT LOSS COSTS ARE VISIBLE ABOVE THE WATER
MEDICAL COSTS INDEMNITY PAYMENTS
LOSS ADJUSTMENT EXPENSE
THE REALLY SCARY THREATS TO YOUR BOTTOM LINE ARE INDIRECT LOSS COSTS LURKING BELOW THE SURFACE
WORKER LOST TIME JOB ACCOMMODATIONS COWORKER & SUPERVISOR LOST PRODUCTIVITY TRAINING COSTS OVERTIME COSTS SCHEDULE DELAYS FOCUS AWAY FROM PROFITS TIME SPENT WITH LEGAL OSHA INVESTIGATION COMPANY REPUTATION
OSHA: RATIO OF INDIRECT TO DIRECT COSTS
0
1
2
3
4
5
$0 - 2,999 $3,000 - 4,999 $5,000 - 9,999 $10,000 +
1.11.21.6
4.5
HOW CAN A BROKER HELP?
CLAIMS RESOURCES: CARRIER OVERSIGHT HANDLING AND RESERVES BENCHMARKING TRAINING PROGRAMS RETURN TO WORK MOD VERIFICATION PROPERTY LOSS SUPPORT COVERAGE ASSIST
LOSS CONTROL RESOURCES: ASSIST WITH AVOIDANCE, THROUGH PREVENTION OR RISK TRANSFER, AND LOSS REDUCTION
LOSSES INDIRECT LOSSES ADMINISTRATIVE RISK FINANCING
WHERE CAN A BROKER ASSIST?
ADMINISTRATIVE EXPENSE: HUMAN RESOURCES SAFETY SERVICE CLAIMS ADMINISTRATION CONTRACT REVIEW REGULATORY COMPLIANCE SPECIAL PROJECTS
LOSSES INDIRECT LOSSES ADMINISTRATIVE RISK FINANCING
RISK FINANCING: PREMIUM TAXES DIVIDENDS RETRO ADJUSTMENTS BROKERAGE FEES
LOSSES INDIRECT LOSS COSTS
ADMINISTRATION EXPENSE RISK FINANCING
BOTTOM LINE
QUESTION #4: YOUR DECISION?
RELATIONSHIPS SPREADSHEET BROKER SELECTION BUSINESS KPIs
