Lowering Costs: Pick the RIGHT Risk Management Partner

Now more than ever, it’s crucial that you utilize a risk management program that is laser-focused on improving your financial goals and serving your key business objectives.

Beyond the price of insurance, there are a multitude of hidden expenses that erode your bottom line. If left unaddressed, these unbudgeted claim costs and events are NOT covered by the insurance carrier.

These runaway costs and claims:

  • Reduce Margins, EBITDA, and Operating Capital
  • Create Business Disruption
  • Inflict Brand and Reputational Damage
  • Impact Strategic Goals and Productivity

To identify, measure, and recapture this critical Financial Leakage, you need to work with a knowledgeable broker who can impact your cost structure BEYOND the price of the premiums or alternative financing models.

Not sure where to start in this process?

Most insurance brokers do not have the tools, insight, or analytics to assess your TRUE cost structure properly. They are unsure of how their work impacts your financial position. In this economy, you deserve better insight.

Our organization is uniquely qualified to provide you with another way forward. We’re focused on your business and how the moving parts of your risk management program can either help or hinder your financial position and goals.

Contact us today for a no-obligation consultation and assessment of your risk management program. As Certified Analytic Brokers, we’ll develop a custom-tailored plan to recapture these expenses and measure the results.

Rising Costs and How to Counter Them

With rising costs across the board, it’s more important than ever to find ways to reduce expenses eroding your financial statement. One place to find these costs is inside your risk management program. These frictional costs can be identified and recaptured over time.

But, how do you find them?

For years, brokers have advised you that the best way to cut risk management expenditures is through policy changes, deductible options, or new funding mechanisms.

These are common ways to shave dollars from the price of your program, but they do not address the more significant cause of financial leakage inside your margins: the frequency and severity of claims.

When a claim occurs, a frictional, unbudgeted expenses ripple through your organization that are absorbed by your balance sheet.

These costs are unbudgeted, erode your margins, and are not covered by the insurance company. When you reduce your claims, the costs of business disruption, equipment replacement, brand damage, and many other impacts also drop.

Here’s what you should do to counter rising costs:

  1. Analyze your risk management program, claims amounts, and cost structure. You need to know where the problem areas are.
  2. Determine how your Financial Leakage is eroding your profits, margins, EBITDA, and budget surplus (non-profits), so you can budget accurately.
  3. Work with a broker who understands how to recapture these costs using specialty resources designed to improve your business performance.

Not sure where to get started? No problem!

As an Analytic Broker, we’re uniquely qualified to help you achieve these goals. We have the tools, expertise, and experience to help you drive down these costs.

Contact us today, and we’ll analyze your existing cost profile, measure the impact of these expenses on your financial statement, and build a strategy to help you reduce them.<

Don’t wait! Your capital is more important than ever in this inflationary market.

An Opportunity to Counter Inflation

Like most businesses, you are dealing with price increases beyond your control. Now more than ever, organizations are looking to reduce their expenditures to lessen the impact of inflation.

One critical component to cost structure (that businesses often overlook) is the amount of CONTROLLABLE wasted capital inside your risk management program.

These potential savings go far beyond the price of insurance.

Here’s what you can do:

Curb the rising costs of goods and services by reducing the severity and frequency of claims inside your organization. How? By implementing the proper resources and programs to improve your risk management practice.

Free up more capital to counter the impact of inflation. When you are not absorbing lost productivity, the cost of replacing equipment, or the impact of business disruption when claims occur, you have more capital and opportunities to grow your business.

To do this, however, you need to work with a broker that understands the importance of (and can measure) these financial metrics to provide you with cost savings.

As an Analytic Brokerage, we are uniquely qualified to help you identify, measure, and recapture these unwanted expenses, so you can better weather a volatile market.

Contact us today for a complimentary assessment. We’ll provide you with an understanding of where cost reduction can occur in your business and a strategic plan to address it. .

Uncovering the Hidden Costs of Risk Management

The price of risk management services does not equal the overall cost of your buying decision. A price-driven policy won't address the additional hidden expenses from turnover, business distribution, equipment replacement, reputational damage, etc., that accrue from claims and often add to your overall cost structure.

When making a significant buying decision for your business, you should consider all the additional costs associated with the purchase.

Your insurance program is no different.

While your existing broker may find you the cheapest policy with a competitive carrier, they're often not considering the significant additional costs eroding your bottom line when claims happen.

To mitigate these expenses, you must go deeper than the price of the insurance policy. You need a broker that can identify the financial leakage points in your business model AND put together a plan to mitigate them. Further, you need a broker that can track these results.

That’s where we can help.

As an Analytic Broker, we're uniquely qualified to address these bottom-line issues with proper risk control and specialized resources. Moreover, we have the capabilities to measure and monitor our performance to provide you with a clear ROI.

Contact us today for a complimentary and comprehensive examination of your program.There’s no obligation for our assessment, and you may be surprised to learn that you’re leaving a lot of money on the table without a strategic plan to address the problems.

Tax Season Checklist: Tackle Financial Leakage!

It’s that time of year again: Tax Season! Over the next few weeks, many businesses will be reminded of the "lost opportunities" derived from their operational expenses.

No matter your EBITDA or profit margin, the I.R.S. shrinks your capital. This cash depletion can often take months to recover.

So, what is the best way to recoup this annual hit to your bottom line?

. . . don't let it leak away in the first place!

Many businesses are not aware of the hidden expenses that eat away at their margins year-round. These unbudgeted expenses hide in your risk management programs and are not covered by the insurance companies.

They are attached to claims events, not premium or deductible costs.

When a claim occurs, productivity disruptions, equipment replacements, reputational damage, and other culprits erode your financial statement.

You may be asking yourself, "OK, how do I stop it?"

Great question! We're here to help.

As Analytic Brokers, we're uniquely qualified to help you replace your tax bill expenditure by finding and addressing the Financial Leakage (mentioned above) that currently exists inside your risk control and risk financing program.

Contact us today and we’ll provide you with a no-risk assessment of your current cost leakage and a detailed plan of action to recapture these critical expenses.

Don't let another tax year come and go without protecting your hard-earned capital!

Mitigating Rising Costs: Chasing the Right Rabbit

Cost increases are never good for business, and your risk management program is no different. For years, brokers have been telling you the best way to cut the costs of your program is through policy changes, deductible options, or new funding mechanisms.

Unfortunately, none of these “solutions” maximizes cost control.

They’re all variables in the cost of the commodity and are determined by the marketplace. When you go this route, you’re chasing the wrong rabbit.

But, there are some critical expenses inside of your program that you CAN control. Financial Leakage that stems from claims events is a great place to start.

What is Financial Leakage?

It is the additional, frictional, unbudgeted expense of a claim event that ripples through your organization and is absorbed by reducing your margins. Think of the operational disruption inside your organization that your insurance policy does not cover.

What can you do to mitigate Financial Leakage?

  1. Measure the areas where it’s occurring inside your cost structure. You need to know where the problem areas are.
  2. Determine how this Financial Leakage is eroding your profits, margins, EBITDA, and budget surplus (non-profits), so you can budget accurately.
  3. Work with a broker who understands how to recapture these costs using specialty resources designed to improve your business performance.

As an Analytic Broker™, we’re uniquely qualified to help you achieve these steps.

We’ll chase the right rabbit and measure the impact these unwanted costs have on your financial statement. Moreover, we’ll build a strategy to help you reduce them over time.

The end result?

  1. Improved profits
  2. Improved EBITDA
  3. Accurate budgeting

Let’s get started... Please contact us for a complimentary Financial Leakage Assessment to see what we can do for you.

Don’t Ignore Financial Leakage in 2022

One of the most overlooked and IMPORTANT ways to improve your business model is by quantifying and attacking the Financial Leakage that currently exists on your financial statement. All organizations: large, medium, or small (for-profit or non-profit), suffer from the slow burn of unaddressed Financial Leakage.

In fact, you may be paying 30 - 50%* more for your Risk Management program than you expected to in your budgeting forecasts.

Unfortunately, each time a claim event ripples through your organization, Financial Leakage manifests as “frictional costs” or “hidden costs” via lost productivity, reputational damage, or business disruption.

Here are 3 Steps you can take to mitigate the damage:

  1. Analyze your current Risk Management program and identify areas where Financial Leakage is eroding your financial statement. We can help you do this if your existing broker is unable to or unwilling.
  2. Create an executable action plan with specialty resources to “plug the holes” and address your financial erosion over time. Again, we’re happy to provide you with a complimentary assessment.
  3. Monitor your Financial Leakage and Total Cost of Risk to ensure that the programs you’re implementing are doing the right thing. For example, we provide our clients with an annual scorecard so they can see the results of our efforts on their behalf as it relates to EBITDA improvement and more. This scorecard gives them much better insight to strengthen their financial decision-making.

The Bottom Line: You can’t grow the way you want to grow as you experience missed opportunities and lost profitability because of your Financial Leakage.

Do you want to operate at your maximum efficiency and potential? Are you curious to know more about your Financial Leakage? Would you like us to help you quantify areas where you can improve? We’re happy to assist.

As Analytic Brokers, we have the tools, insight, and analytics needed to quantify and address your Financial Leakage.

As Analytic Brokers, we have the tools, insight, and analytics needed to quantify and address your Financial Leakage. Please contact us for a complimentary Financial Leakage Assessment to see what we can do for you. You might be surprised to see how much additional capital you’re currently leaving on the table.

‘Tis the Season: Recapturing Costs During Insurance Renewals

Aside from year-end tasks and holiday events, ‘tis the season for insurance renewals. You’ll likely be meeting with insurance brokers soon to determine the right risk management program for your business in 2022.

In the past, you’ve explored coverages and premiums.

This year, you can (and should) expect better for your business and your financial statement. There is likely a sizable sum of unfunded expenses that your business absorbs that are not covered by the insurance carriers. This Financial Leakage is a direct result of the unbudgeted impact that accompanies each claim event you experience. Lost productivity, brand damage, and the cost of replacing equipment are a few examples of these expenses.

Unfortunately for your organization, these expenses are typically not discussed in the renewal process, leaving you without the ability to measure the effectiveness of your insurance program properly.

You deserve to know much more than the basics of premiums and coverages. The true costs of your risk management program go much deeper than that.

Here are Four Critical Questions you should ask your broker during renewal:

  1. What is the impact you have had on our business results (profits, EBITDA, budget accuracy) over the last year?
  2. What impacts should we expect inside our cost structure in the coming year?
  3. What risk management projects will you implement in the coming year to reduce our cost structure?
  4. How can we quantify your impact using benchmark data and key metrics.

As a Certified Analytic Broker, we are uniquely qualified to answer these questions for you during a complimentary consultation. We’ll attach our answers to your key metrics and help you measure your organization’s cost structure in 2022 and beyond.

Best of all, we’ll develop a data-driven plan to help you measure and recapture these controllable costs to improve your business performance in 2022 and beyond.

Measuring Financial Performance in 2022

2022 is right around the corner, and you’re likely busy planning for it. Soon, you’ll use important metrics, benchmarks, and KPI’s for strategizing. Knowing where you stand financially is critical to measuring your success and setting future goals.

You should expect your insurance broker to operate at the same level, using key metrics to quantify their performance on your behalf.

Sadly, most brokers use obsolete benchmarks established in the 1600s to quantify their effectiveness: exposure, rate, and premium.

Without a modern way of quantifying their performance, your current insurance broker is likely holding your business back from optimum performance.

If you want to pinpoint the financial impact of your risk management program, you’ll need to understand your cost structure fully.

Here’s how you can do that: Ask your current broker to:

  1. Provide a financial measurement of their performance. How has their work helped you meet your business challenges? If so, which challenges? And by how much?
  2. Tell you what your REAL costs are. These costs should include the Financial Leakage that exists inside your cost structure (the unbudgeted expenses of claim events) as they’re absorbed by your organization.
  3. Provide a detailed plan for reducing your costs in 2022. Make sure your broker translates these costs into your key metrics, such as EBITDA, margins, or surplus impact. Also, make sure this plan is implemented and assessed regularly.

If your current broker is unable/unwilling to meet these requests, you’re likely dealing with a broker who is simply selling you an insurance program.

Your business deserves better. To move your risk management program into the future of data-driven outcomes and ROIs, contact us today. We’ll provide you with a complimentary cost analysis and key recommendations to help you meet your operational goals in 2022 and beyond.

Critical Budget Action Items for 2022

It’s almost time for your 2022 yearly planning. Of course, you’re budgeting for your risk management program, but don’t simply focus on your insurance prices and premiums.

There are more significant costs you should consider in your forecasts.

Beyond premiums and deductibles, you’ll find the hidden costs of claims, also known as Financial Leakage, showing up as business disruption, reputational damage, and the operational and strategic impacts you incur when you experience a sizeable claim event.

Your insurance carrier does NOT pay these unfunded expenses. Your organization absorbs them, and they reduce your margins (or surplus goals for non-profits).

Let’s get ahead of the game by assessing the true cost of your risk management program. Here’s what you should do right now:

  1. Get a current and accurate evaluation of your Financial Leakage. This is a finite, quantifiable, and controllable expense that prevents you from maximizing your ultimate profit potential.
  2. Assess the damage Financial Leakage is causing to your sales and profits. With the proper analytic tools, our firm can assess your Financial Leakage AND create a plan to help you reduce its impact.
  3. Develop a plan to attack your Financial Leakage to improve your bottom line. It’s possible to recapture a significant portion of your Financial Leakage with a solid risk reduction and mitigation strategy. We can help you with this too.

So, if you’re committed to maximizing your business performance in 2022, we should talk right away. To start the process, our firm can provide you with a no-obligation Financial Leakage Report™ on your existing cost structure.

Best of all, we’ll develop a data-driven plan to help you measure and recapture these controllable costs to improve your business performance in 2022 and beyond. Contact us for a complimentary, no obligation consultation.

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