Stop Your Healthcare Cost Leakage

Your organization is likely hemorrhaging a tremendous amount of capital inside of your healthcare costs. Most organizations have financial leakage that adds an additional 40% to their health insurance expenses.* This leakage has always been there. Until now, it hasn’t been quantifiable.

Why should tackling your leakage be a priority? Well, for instance, if your healthcare insurance spend is $1,000,000, you probably have $400,000 of additional costs that are going unaddressed. (You can adjust this estimate by adding 40% of financial leakage to your organization's actual spend.)

Stop Your Healthcare Cost Leakage

So, where is this money going? And how is it leaking from your financial statement?

Leakage takes the form of direct and indirect loss costs on top of your insurance premiums. These costs are ignored by traditional insurance brokers as they are unable to accurately identify them. Here are some brief examples of direct and indirect loss costs in your healthcare program:

  • Direct Loss Costs – The additional uninsured hard costs that occur each time you have a claim. They include things like sick leave, salary continuation and Family Medical Leave Act expenses.
  • Indirect Loss Costs – The “soft” but real costs that impact your organization with each and every claim. They include training, temporary workers, brand loss, and absenteeism.

As Analytic Brokers™ we’re uniquely qualified to assess your financial leakage so you can gain better insight and decision support. Secondly, we’ll provide you with a plan of action to reduce these expenses and improve your financial performance. Unlike traditional brokers, we’ll review the entire cost structure of your healthcare program (not just premiums) to see where we can make the biggest impact.

Don’t wait and let your capital continue to seep off your bottom line! Contact us today

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

Measure Your Insurance Program’s ROI

Have you ever considered your insurance program or risk management expenses as a Return on Investment? No? You’re not alone. Simply put, traditional insurance brokerages do not have the capability to quantify the financial impact of a risk management program.

The ROI of your insurance program should be measured by the same level of accuracy and scrutiny that you apply toward assessing your other business initiatives. Isn’t it true that virtually every expense you consider for the coming year must yield a measurable result?

Your insurance program should not be an exception.

Insurance Program ROI

As a Certified Analytic Broker™, we’re uniquely able to quantify the ROI of your current risk management program. We’ll provide an in-depth analysis of your cost structure and provide insight on what you can do in the future to improve your business performance.

As a financial executive, you deserve to fully understand your cost structure and how to move your overhead expenses towards a true ROI. It can be done.

Fill out the contact form and we’ll show you how.

Your Biggest Unchecked Profit Drain

If you are like most organizations, your largest source of unchecked profit drain lies right before your eyes. It’s eroding your efficiencies, capital, productivity and financial stability. It’s huge.

Unfortunately, most firms and their insurance brokers have ignored it for years. Why? Because they had no way to measure it. And even if they attempted to measure it, they had no way to address it. But we do.

Your profit drain is not inside your insurance program or your premium costs. This goes against the message most insurance brokers deliver as they try to sell you insurance for everything. Your profit drain actually sits right inside your business, and it costs you tens, hundreds, or (with larger organizations) millions of dollars.

This Financial Leakage is insidious to your organization. Each time you have an insurance claim of any type, your entire cost structure blows up. No matter the type of claim, you have significant Financial Leakage related to time, people, brand, customers, managers, internal friction, extra procedures, etc.

How much is YOUR unchecked profit drain and Financial Leakage?

As Analytic Brokers™, we utilize data created by TCORCalc®. In reviewing the data obtained from hundreds of CFO’s and risk managers nationwide, here is what we know: Your drain on profits (over and above your insurance cost) is usually an additional 30% to 60%.

Look at your annual budget for insurance costs… now add an additional 30% to 60% to that amount to cover the costs that are being absorbed inside your organization. How does that change your financial position? Can you afford to leave that profit drain inside your financial statement?

Of course not.

You should contact us today for a Financial Leakage Report that will help you establish exactly how much money is draining from your organization. It will be the most important thing you can do to plug the leak and maximize your bottom line.

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

Recover Your Wasted Capital

The largest expense inside your risk management and financing program is the Financial Leakage that exists inside your business. These indirect loss costs rob your business of productivity, margins and EBITDA results.

They are there right now, skewing your results towards unprofitability. And your leakage gets worse every time you have a claim (even if it is insured). In fact, if your results mirror the average of firms like yours, you are likely throwing a tremendous amount of margin away.

Most insurance providers won’t tell you this, because they don’t have the ability to measure, forecast or impact your financial leakage. Until now, the exact amount of damage inside your business has been unquantifiable. is huge!

Think about this: How much does every loss cost you? (whether it be a worker’s compensation, automobile or liability claim). Sure the insurance carrier may pay them, but how much do they really cost you in additional expense? Can you remember any losses that became expensive problems for your organization in time, reputation or productivity? That is wasted capital.

Your Budget Is Wrong

As an Analytic Broker™, not only can we pinpoint exactly how much capital your firm is wasting, we can show you how to recapture it. Imagine the impact on your business results!

Can you afford to ignore it?

So, contact us today. We will provide your organization with an in-depth Financial Leakage Report™. Without it, you are probably wasting a great deal of financial resources and your hard-earned capital.

“If you can’t measure it, you can’t improve it..” - Lord Kelvin

Your Budget Is Wrong

If you are like most businesses, you are now working on your financial planning for next year. Of course, a huge part of that is your budget for financial expenses that will drive your profit projections, CapEx spending and hiring decisions.

What if I told you your budget projections for Risk Financing and Risk Management expenses were inaccurate? If your budget was 30% off target (or more)* before you even began the year, wouldn’t you want to know about it?

For example, if your annual property/casualty insurance costs are $375,000 or more, you likely have a six figure number for your unbudgeted expenses.

Unless you have accounted for the Financial Leakage that currently exists inside your business, your budget is skewed. Financial Leakage resides in every single insurance claim you have, from any type of loss (property, vehicles, people, etc.). It’s not about the insurance policies.

Chances are, you have not accounted for these costs. Most insurance brokerages and providers do not have the ability to pinpoint, quantify and help remove these costs. We do.

So, as you finalize your upcoming budget, remember this: Without knowing your projected Financial Leakage, you will be wasting capital and negatively impacting your ability to maximize your bottom line.

“If it cannot be measured, it cannot be improved.” - Lord Kelvin

If you would like to quantify the additional money you need to include in your budget, contact us for a data-driven Financial Leakage Report™. It will mean the difference between a budget based on opinions and one based on facts.

Contact Us to Learn More

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

Calculate and Unlock Your CAPEX Funding Now

Whether you call it CAPEX (Capital Expenditures), your budget for equipment purchases, or funding for your business improvements, it’s basically the same thing. You scour your financial statements every year to find money to invest in your buildings, equipment, renovations, IT upgrades, etc.

Normally, you budget for these items. But, in some cases, the financial requirements for funding sneaks up on you through unplanned obsolescence or shifting business conditions. When that happens, you might ask the question: "What extra sources do we have for capital?"

Calculate and Unlock Your CAPEX Funding

The answer lies in front of your eyes, and it has always been there. Yet, for most of your business career, the source and the amount was unknown to you. It really wasn’t your fault. You simply didn’t have the information that real-time analytics can now provide you. The playing field has changed.

Financial Leakage currently exists in your operation, and it’s escaping your financial results on a regular basis. That is a GUARANTEE.

Your Financial Leakage is the result of the extra costs you incur each time you have an insurance loss. Whether it’s people, productivity, brand value, customer dissatisfaction or other items, these costs are significant and consistent. They exist inside of your organization as well as virtually all other businesses. And until now, they have never been known or acted upon.

With our firm’s ability as a Certified Analytic Broker™, we can provide you with a tremendously important business optic. Our analytics-based Financial Leakage Report™ will help you:

  • Pinpoint exactly how much money is flowing from your financial results
  • Show you how to recapture it
  • Demonstrate the impact your leakage is having on your CAPEX, EBITDA and margins

Your business has changed dramatically in the past several years. So has ours. As a Certified Analytic Broker™ we are evolving from simply a provider of insurance products to that of a business solutions organization. We have a solution to help you discover and unlock your CAPEX funds and move you closer to achieving your key financial outcomes.

Contact us today to learn how

The Quickest Way to Improve Your Margins

One of the quickest ways to improve your margins is staring you in the face. It goes unnoticed by many, and yet it’s one of the simplest to execute as you recapture costs and boost your profits.

You have existing Financial Leakage inside your organization that’s going unabated, robbing you every day of margins, EBITDA, productivity and ownership valuation.

This Financial Leakage is the quantifiable and controllable cost that exists within every insurance claim you experience. And it’s tied to things like productivity, management reporting, accelerated depreciation or brand/reputation loss.

In most cases, it’s between 30% and 60% of additional cost on top of your existing risk financing expenses.


So, ask yourself these questions: "If I take our total risk financing expenses and multiply it by the above percentages, how does it impact our margins? What if we could recapture it?"

Financial Leakage Example

It is 100% guaranteed that leakage exists inside your organization, with every insurance claim. If you don’t know exactly how much it’s costing you, you can never achieve your margin efficiency.

As an Analytic Broker™ we can provide you with a confidential Certified Financial Leakage™ Report, showing you exactly what your current leakage is and how deeply it’s impacting your margins.

You really need this important information so that you can plug the leak. We can help you there too.

Of course, you could choose to do nothing. But, without knowing exactly how much this leakage is costing you, you might not be doing everything in your power to improve your business organization.

So, if you would like to really understand your cost structure and how to improve your margins by focusing on your leakage, contact us. Our firm will show you this vitally important business metric and how to improve your margins by reducing it.

The Three Ways to Reduce Your Costs

There are only three ways that a successful organization reduces its risk financing and risk management program costs. Our firm is extremely focused on each.

To represent you correctly and efficiently, each of these items must be reviewed with specific data and results. Here they are in descending order:

First: Reduce your existing frictional costs and financial leakage inside your business model.

These costs have always been there, but until recently, you had no way of measuring them. These are the first item of business for you, as they are burning your margins and EBITDA every day.

Every time you experience an insurance claim of any type, (property, liability, workers comp, benefits, etc.,) there is a cost that remains on your financial results. No matter who pays for the claim.

We help you focus on this issue first. It is critical that these costs are translated into your KPI’s and metrics. We will help you squeeze these controllable expenses out of your business.

Second: Investigate Alternative Risk Financing Programs

Once we understand your cost structure, EBITDA, and cash flow requirements, we will help determine if there is a more appropriate funding mechanism for you. These are financial vehicles for funding your losses and include captive arrangements, high deductibles and self-insured programs.

These programs are very effective, but they’re not for everyone. Without the risk control and claims management services that we provide, you may be simply trading dollars and exchanging premium expenses for claims paid by you.

Third: Insurance Product Placement

Let’s face it… There are not a lot of insurance carriers out there. The number has actually decreased from dozens to a handful in the past 15 years. What’s more, most agents and brokers represent all the carriers now.

So, rather than using the insurance marketplace as a point of differentiation, we focus on our “skill” in approaching it.

Not all brokers have the same skillset in this area. Because we first focus on your controllable costs, we are able to present your case to the marketplace more effectively. Underwriters care about the same thing you do: selecting risks that have the best controllable expense profile.

As a Certified Analytic Brokerage™, our firm is one of the few in North America that can actually focus on all three areas of cost reduction. By using TCORCalc®, we can provide you data, cost containment and quantifiable results. Please let us know if you are ready to look at your cost structure in an entirely new way.

Are You Wasting EBITDA?

Your continued success in business demands that you constantly monitor your EBITDA. You already know this and have devised many different strategies to improve your results.

But, you probably have neglected one of the most significant ways that you can assess and improve your EBITDA.


It is not really your fault, as for years your insurance broker has told you that the key to improving EBITDA is to compress the cost of your insurance. That is no longer the case. Presuming you are considered a good underwriting risk, there just is not much left to reduce.

But, aside from the risk financing costs (whether traditional, captive or self-insured,) there is a huge cost inside your business model that is probably going unmanaged. And it is probably eating your profits at an astounding rate.

It is the Financial Leakage that occurs inside your business every time you have a claim. No matter who pays your claims, the tremendous cost still exists. Sure, the claim is covered, but what about all the other costs that burn inside your business due to the event?

Here are just a few examples. There are many more.

  • Retraining Workers
  • Lost Productivity
  • Lost Customers
  • Wasted Capital
  • Brand Loss

Here is what we already know based upon data provided specifically by our firm through TCORCalc®. You are probably experiencing a Financial Leakage burn rate of 30% to 60%* in addition to your risk financing costs. That is the Financial Leakage that is constantly flowing from your profits. And it’s a controllable expense.

Risk Financing Costs Financial Leakage Rate EBITDA Impact
$500,000 30% $150,000
$500,000 40% $200,000
$500,000 50% $250,000
$500,000 60% $300,000


What if you focused on your current Financial Leakage?

Your EBITDA and margins would automatically improve. Your organization would be more competitive and able to be nimbler to customer pricing requests. Not to mention the fact that your firm’s valuation would increase based upon a multiple of EBITDA.

As a Certified Analytic Brokerage™,  we can help you identify exactly how much EBITDA is leaking from your financial statement. We can show it to you using data that is proprietary to our firm through TCORCalc®. Then provide you with the Business Solution that will attack and resolve the problem.

So, now that you know this, can you afford to continue your controllable Financial Leakage? Now that the data and methods exist, are you willing to allow it to erode your EBITDA unchecked?  More importantly, are you satisfied with letting this erosion continue to undermine all the other business initiatives that you are implementing to improve profits?

Contact us today for a Financial Leakage Report that will pinpoint your exact financial situation. Without it, you are probably throwing away your EBITDA!

Improve Your Financial Stewardship

As a non-profit (or not-for-profit) organization, you know the importance of responsible financial stewardship. Your budgetary surplus (if any) is dependent upon your making choices that lead to fiscal stability. Your constituency needs your services and your stakeholders (constituents, donors and regulators) require you be on top of your “Financial Leakage” at all times.

In many cases you have solely depended upon your risk financing, risk management and insurance program to protect your assets. You have historically seen these premiums as the cost of your program.

But that has changed in the past 24 months. 

We now know that your current program contains a significant amount of “Controllable Financial Leakage.” In fact, it is probable that it is approaching an additional 40% of your premium cost structure (or more.) As an example, if you are paying $300,000 for risk financing and insurance, you may suffer as much as an additional $120,000 in controllable Financial Leakage.

Financial Leakage

Financial Leakage is outside your premium costs. These are the controllable costs that are eroding your funding. They are in the form of loss costs, indirect loss costs and your administration costs. They are usually severe and intensely felt inside your organization.

How do we know this? Because as an Analytic Brokerage™ we are among the select few insurance brokerage firms in North America that can help you identify and measure it. In fact, without obtaining a Certified Financial Leakage report, you are probably wasting a tremendous amount of the funding you should be using to invest in your important offerings to constituents.

Here are some of the questions you should be asking yourself and your broker right now:

  • How much Financial Leakage do we presently have inside our organization?
  • How has it impacted our surplus balance?
  • How has it undermined our ability to fund specific programs and initiatives?
  • How can we effectively measure and recapture it?
  • Would our stakeholders expect us to know this impact and do something about it?

So, if you are really interested in maximizing the use of the funding you receive, or if your organization is planning an expansion with funding campaigns, you should contact us for more information regarding the Analytic Brokerage™ Financial Leakage Report.

We can provide you with this critical information, along with solutions that will improve your ability to recapture these controllable costs. Thereby maximizing your fiscal stewardship of your organization.

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