Is Your Business Being Held Back by Your Insurance Broker?

Right now you are probably planning for 2019. You use metrics, benchmarks, and KPI’s for strategizing and measuring your outcomes. As the year unfolds, they are your lifeblood.

Unfortunately, your risk financing and insurance program has not caught up with the necessity of measuring results using data and financial metrics. In fact, most brokers use benchmarks that were established in the 1600’s to quantify their effectiveness: exposure, rate, and premium.

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

Is Your Business Being Held Back by Your Insurance Broker?

If you want to pinpoint the financial impact of your risk management program on your business model, you need to fully understand your cost structure. Here’s how:

  1. Ask your current broker to provide you with a financial measurement of their performance. How has their work helped you meet business challenges?
  2. Find out what your REAL costs are. This should include the financial leakage from your Enterprise Cost of Claims (indirect cost impact) as they unwind themselves through your entire organization.
  3. Provide a detailed plan for reducing costs in 2019. Make sure it is translated into metrics such as EBITDA, margins, or surplus impact.

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

To move your risk management program ahead, contact us today. We’ll provide you with the results, analysis, and data improvements needed to support optimal business performance.

Contact us today

3 Steps to Improve Your 2019 Results

Don’t wait until Labor Day to begin reviewing your risk financing program. Get ahead of the game by assessing the Total Costs of your current and future risks. Also, don’t make the huge mistake of focusing primarily on the price of insurance. Ultimate cost reduction and business performance improvements are found on a much deeper level.

3 Steps to Improve Your 2019 Results

To maximize your financial performance in 2019, here’s what you should do now:

  1. Get a current (and accurate) evaluation of your Total Costs. Make sure this evaluation includes the enterprise cost of claims (the hidden expenses absorbed by your organization during a claims event). Note: This leakage is way more than you think, and is a major drag on your financial and operational goals.
  2. Compare the Total Costs of your risk financing program to your sales and profits to improve your forecasting and planning activities (if you don’t do this, your cost and income projections will be off significantly for 2019).
  3. Attack and measure your Total Costs to improve your bottom line. Recapturing a significant portion of this financial leakage is possible with the right risk reduction and mitigation strategy.

So, if you’re committed to maximizing your business performance in 2019, we should talk right away. Our firm can provide a Financial Leakage Report™ on your existing cost structure to start the process. Best of all, we’ll develop a data-driven plan to help you measure and recapture the controllable costs that may be eroding your bottom line.

Contact us today

TCOR 2.0 - Improving Your Financial Performance

Many organizations are not aware of their true cost savings potential, because insurance providers only focus on a single aspect of their Total Cost of Risk: the cost of insurance.

For the record, the cost of insurance is the smallest part of your risk management cost structure. The majority of your out of pocket expenses comes from your retained cost of claims (deductibles, self insurance, or uncovered losses), and the enterprise cost of claims (the hidden expenses absorbed by your organization during a claims event).

Quantifying your Total Cost of Risk creates opportunity for risk control and cost reduction strategies that may significantly reduce your expenses.

TCOR 2.0  - Improving Your Financial Performance

If you haven’t quantified your true Total Cost of Risk (the complete picture), you may be miscalculating your risk financing and making incorrect budgetary decisions.

As Certified Analytic Broker™ we’re uniquely qualified to provide in-depth assessment of your existing cost structure. Moreover, we can assemble a plan to improve your financial results going forward. But, first things first, you must know your numbers!

Contact us today

Stop the Slow Drip of Financial Leakage

Unchecked financial leakage (or Enterprise Cost of Claims) is your largest uncovered risk. While most insurance brokers won’t (or can’t) address it, our firm is uniquely qualified to pinpoint these critical costs that are likely eroding your bottom line.

Here’s how it works:

Every single time you have a claim (of any type) your organization absorbs additional costs for the ramifications of the claim event. Even if the claim is covered by insurance, your costs increase as the claim ripples through your entire organization. This disruption impacts your productivity, strategic, financial and operational outcomes.

Moreover, these costs are not covered by insurance. They are paid by YOUR organization.

Stop the Slow Drip of Financial Leakage

You may think these hidden costs don’t apply to you (that they’re only found in Fortune 500 companies) but the data shows this is not the case. All organizations: large, medium, or small, (for-profit or non-profit) suffer from the slow drip of financial leakage.

The first step toward recapturing it: identifying it! That’s where we can help. As Analytic Brokers, we have the tools, insight, and analytics to quantify these hidden costs. Once we’ve established a comprehensive financial assessment, we’ll help you work toward shoring up these expenses.

As an Analytic Broker™ we can answer this vital question and demonstrate our impact on your cost structure. We’re uniquely qualified to provide you with quantifiable and measurable solutions. We put REAL VALUE in Value Added Services.

Contact us today for a complimentary Financial Leakage Report. You might be surprised to see how much profit you’re currently leaving on the table.

Contact us today

We Put Real Value into Value Added Services

For years, insurance brokers have talked about “Value-Added Services.” Most of the time, they speak in theoretical jargon without providing tangible results.

Most brokers are happy to tell you about cutting-edge computer programs, risk control projects, or claims management capabilities. They may also wrap those tools and features in a catchy brand name in an attempt to set them apart from their competitors.

However, if you ask them to quantify their services and what the impact on your bottom line will be...the silence is stunning. You’ll know right away these are Value-Added Services attached to their specific brand and NOT your bottom line.

We Put Real Value into Value Added Services

As a buyer, you should expect an answer to this important question:

“How have you improved our financial results and what is the specific impact on our margins or surplus?”

You need (and deserve) to know because your entire cost structure and key metrics and KPI’s are affected by it. Without knowing, you can’t budget for anything other than next year’s insurance premiums. And, you certainly can’t assess your current broker’s impact.

As an Analytic Broker™ we can answer this vital question and demonstrate our impact on your cost structure. We’re uniquely qualified to provide you with quantifiable and measurable solutions. We put REAL VALUE in Value Added Services.

Contact us today for an complimentary assessment of your cost structure.

Contact us today

Recapturing Your Biggest Risk Costs

To improve your financial results, you’ve implemented strategies to recapture wasted capital. But, you may have missed one of the most important factors leading to controllable financial leakage inside your business model: Enterprise Claim Costs.

For example: in an automobile accident the Enterprise Claim Cost is all of the other uninsured expenses triggered by the loss. Employee replacement, accelerated depreciation, disruption to your normal business functions, and brand loss - to name a few. These out of pocket expenses are absorbed by YOUR business (not the insurance carrier).

Knowing Your Enterprise Claim Cost is critical. If you cannot measure these impacts, you cannot implement programs to reduce and recapture them.

As an Analytic Broker™ we are uniquely qualified to assess the financial leakage inside your Enterprise Claim Costs. Then, we’ll help you recapture it. Please don’t delay, these hidden expenses are detrimental to the health and long-term success of your business.

Contact us today to get your Enterprise Claim Cost assessment and complimentary Financial Leakage Report™. Quantifying the hidden expenses in your risk management program is the first step toward improving your financial results.

Contact us today

Recapture Your Lost Productivity

Fact: Loss costs of accidents and liability claims erode your productivity goals.

Here’s the truth: For every $100 you incur in losses, you suffer an additional $100 to $125 in lost productivity (regardless of who pays the claims*). These expenses include hiring replacement workers, retraining, vehicle loss of use, brand loss, etc.

So, let’s say you had $200,000 in claims last year (paid by an insurance company). You’re still out of pocket an additional $200,000 to $250,000 in lost productivity expenditures!

Worst of all: that $200,000+ leaks directly from your profits and reduces your margins.

Wouldn’t you like to stop the unnecessary hemorrhaging in your business model?

Recapture Your Lost Productivity

As an Analytic Brokerage, we can help solve your problem by assessing and recapturing your lost productivity costs. We’re uniquely qualified to pinpoint financial leakage and create a plan of action to address it through our risk control and claims management expertise.

The end result (and our goal) is to help you improve your business results.

So, if you’d like to improve your productivity and your profits, contact us today. You can’t afford to continue throwing reclaimable money out of the window every year.

Contact us today

How to Increase Your Shareholder/Ownership Valuation

If you are like most closely-held or private corporations, your most valuable asset is your shareholder/ownership valuation. This multiple of your EBITDA (or profit margins) is what investors and/or potential buyers are most interested in.

Even if your company isn’t currently for sale, you know how important it is to keep your valuation up. This important business metric is used in stockholder buybacks, banking negotiations, and your personal wealth assessments.

The most effective way to improve your valuation is to stop the existing Financial Leakage that resides inside your current business model. It’s the single most important business objective you can accomplish in short order this year.

Think about it this way: If your firm currently has $200,000 of Financial Leakage (the hidden costs related to productivity and operational inefficiencies when you experience a claim or loss) and your valuation multiple is 5x your EBITDA*...

You’re leaving $1,000,000 of Shareholder/Ownership Valuation on the table.

How to Increase Your Shareholder/Ownership Valuation

To prevent this valuation loss, you should immediately:

  1. Quantify the Financial Leakage currently inside your risk financing and risk control program. This is a finite, quantifiable, and controllable expense that is keeping you from maximizing your valuation multiple.
  2. Recapture as much Financial Leakage as possible. This has been an impossible endeavor until recently, as that true leakage amount was difficult to pinpoint. Now (with the proper analytic tools), we can assess your Financial Leakage AND (more importantly) create a plan to help you recapture it.

As Analytic Brokers™, we are uniquely qualified to help you reduce your Financial Leakage and improve your Shareholder/Ownership Valuation. When that Leakage returns to your business in the form of improved EBITDA or profits, your Valuation will move upward.

Contact us today

Are You Chasing the Wrong Risk Financing Rabbit?

For years, insurance brokers have been telling you the best way to reduce your costs is through policy changes, coverage comparisons, deductible options or even program risk retention changes.

None of these options gets to the heart of the matter. They’re all VARIABLES in the cost of the commodity. When you go this route, you’re chasing the wrong rabbit.

It’s time to take your power back by focusing on the cost structure that you can control. Specifically, it’s time to focus on the loss costs and the expenses of managing your program. These costs are usually 30% to 60% of additional cost ABOVE your insurance premiums.

Why don’t insurance providers tell you this?

Are You Chasing the Wrong Risk Financing Rabbit?

Unfortunately, many brokers don’t have the capability to help you focus on these costs, let alone calculate them. So, these costs continue to erode your profits.

Here’s the good news: emergent analytics software is now providing cutting-edge brokers with the capability to provide buyers with in-depth information on their cost structures.

As an Analytic Broker™, we’re uniquely qualified to measure the impact of these exorbitant costs and build a strategy to help you reduce them.

Identifying and tackling these costs will be critical to your business results in the coming year. The amount of EBITDA, productivity, and margins you’re wasting must be determined and reclaimed.

Otherwise, your organization isn’t performing at peak efficiency.

So, if you would like to stop chasing the wrong rabbit and finally understand your TOTAL cost structure and how to improve it, contact us today for an in depth Financial Leakage Report™.

Contact us today

*Source: TCORCalc® - North America's leading authority on risk management program analytics and insurance industry benchmarks.

5 Critical Questions for Insurance Renewals

This is a busy time of year for you. Aside from year-end tasks and holiday events, many of you are also managing your insurance renewals.

In the past, it was good enough to ask your broker: "Are my coverages adequate?" and, "what’s my premium compared to last year?"

No matter how you slice it, these are the only questions most brokers can answer for you. While their renewal information may contain dozens of pages, the results are the same: Coverages and Premiums. But times are different now.

Your organization has probably changed dramatically in the past several years. Your business metrics are more evolved now, aren’t they? The renewal information provided by most brokers won’t help you measure the effectiveness or business impact of your insurance program.

Stop Your Healthcare Cost Leakage

So, here are 5 Critical Questions you must ask your broker:

  1. What is the impact you have had in the past year on our business results (improved profits, EBITDA, budget accuracy)? Not simply the premiums or claims that have been paid.
  2. What impacts should we expect inside our cost structure in the coming year?
  3. What is the exact cost structure we should apply to our product costs or bid overhead?
  4. What projects will you implement in the coming year to reduce our cost structure?
  5. How can we quantify your impact using benchmark data and results?

As an astute business person, you deserve to know much more than the basics of premiums and coverages. If one of your goals for 2018 is to make business decisions based upon accurate data and quantifiable results, these are the questions you need to ask.

As a Certified Analytic Broker™, we'll answer these questions for you and many more. We’ll attach our answers to your key metrics and help you impact your organization’s cost structure in 2018 and beyond.

Please contact us today for a full assessment of your entire cost structure.

Contact us today

*Source: TCORCalc® - North America's leading authority on risk management program analytics and insurance industry benchmarks.

Copyright © 2023 Iron Insurance Partners, TCORCalc®, Analytic Broker, and Analytic Brokerage are registered trademarks of C.R. Ekern & Company, Inc.