The Tax Man Cometh - Rebuild Your Lost Capital

Tax season reminds many businesses of "lost opportunities." No matter what your EBITDA margin is, the I.R.S. shrinks your capital. Many times, this depletion of cash takes 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. Unbudgeted productivity disruptions, the surprise costs of operational misfires, potential reputational damage when something bad happens... just to name a few culprits.

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

Great question! We're here to help.

Rebuild Your Lost Capital

No, we can’t pay your tax bill, but as Analytic Brokers we're uniquely qualified to help you replace your cash quicker. How? By finding and attacking the financial leakage (mentioned above) that currently exists inside your risk control and risk financing program.

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

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.

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Know Your Insurance Broker ROI

Whether it is office equipment, vehicles, manufacturing processes, or employee hiring, every business decision you make carries an ROI (return on investment).

Isn’t it time to determine what the ROI is on your insurance program?

Now, you may think the ROI is measured simply by the premiums you pay. Nothing could be further from the truth!

Know Your Insurance Broker ROI

Here are some questions to consider:

What is the value of your broker’s consulting projects? - Most brokers show you their services as Value Added Services. But, what is the value? What is the quantifiable outcome? Or, did we even get any consulting projects other than insurance selling?

How much has the broker's claim reduction programs reduced your costs? - Telling you that future insurance premiums will be reduced is not satisfactory. They should quantify cost reduction results from the "frictional" cost of your suffered losses. If they are unable to do this, you are likely being underserved.

Unless you include the items above in your assessment, you are receiving an incomplete picture. You are basing an important decision on the insurance costs; not the ROI of the services you require and/or received.

As a Analytic Broker™, we are able to demonstrate what your current ROI is and what it should be with a proper risk management program in place. We have the data and metrics that will let you determine how your program is either improving or draining your financial performance.

The first step? Contact us today to know the ROI of your existing program. We'll provide a no-obligation assessment so you can make the best decision for your business.

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6 Steps to Safeguard Your Financial Statement

In addition to your profits and productivity, the changing cost of your risk financing program must be monitored throughout the year. You must remember price is NOT the same as cost when it comes to your insurance coverage. Unless you are accurately measuring your Financial Leakage, you are looking at an incomplete picture.

Financial Leakage flows through your entire organization with each and every claim you experience, adding an additional 30% to 60% to your overall costs.*

These financially-corrosive indirect costs manifest in workflow disruption, brand/reputational damage, and equipment replacement expense - just to name a few.

6 Steps to Safeguard Your Financial Statement

To effectively manage and mitigate the damage these costs inflict upon your financial statement, you should take these 6 Steps with your insurance provider:

  • Request a claims analysis that shows your claims AND the financial leakage that your business is suffering from those claims. You need to see the total picture.
  • Embed these additional costs inside your budget to ensure accuracy going forward. Financial Leakage is a measurable loss that needs to be accounted for.
  • Determine the percentage of negative impact against your most important KPI’s (e.g. How much margin is your Financial Leakage burning?)
  • Ask your provider to create a plan for the reduction of these costs. There are important resources available to reduce this additional expense load.
  • Monitor program effectiveness (#4) against your budget. Be certain that your financial leakage is being properly mitigated on a quarterly basis.
  • Add the results to your “best practices” benchmarks for KPI improvement. Working with a broker who is capable of providing you continued business intelligence is crucial.

Speaking of, as an Analytic Broker our firm is uniquely qualified to assess your financial leakage AND create a plan of action to erode it. We’ll help you fill in the blanks on your budget and measure our success via the KPI’s that are most important to your business.

The first step? Contact us today. We will be pleased to provide you with a complimentary Financial Leakage assessment. Together, we’ll safeguard your financial statement.

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Improve Your Financial Outlook in 2019

We know how busy this time of year is for you. Among many year-end tasks, you’re likely planning your insurance and risk financing renewal for the coming year.

If so, have you decided if your cost structure is appropriate? Have you answered: “How do these renewal terms fit into our budget and EBITDA calculations for the coming year?

And what about: “How much controllable financial leakage are we experiencing outside of the hard costs of the insurance policies and claims?”

Improve Your Financial Outlook in 2019

If your renewal provider can’t give you these answers, chances are you will be wasting a tremendous amount of controllable capital in the coming year.

Imagine taking your insurance renewal terms and adding an additional 30%!  

30%. That is the average percentage* of financial leakage most businesses are currently absorbing through claims and the indirect costs of those claims.

We’d like to help you do something about this. As Analytic Brokers, we’re uniquely qualified to quantify the true costs of your risk management program and pinpoint areas for improvement. Best of all, our firm will design a customized plan to help you recapture those costs so you can improve your financial outlook in 2019.

Contact us today

Improved Profits: The ROI of Risk Management

Pop Quiz: What is the most important reason for adopting and monitoring a solid, results-driven risk management program?

Answer: The large amount of profits and capital available to recapture inside of your business organization.

And, by the way, this amount goes far beyond the cost of the insurance program.

To gain valuable insight, you should ask your current insurance broker: “How far beyond the insurance program do these costs go?” AND “What is the ROI of our current risk management investment in reducing them?”

Improved Profits: The ROI of Risk Management

If you are like most businesses, the ballpark figure for additional costs are between 30% and 60% on top of your insurance costs. This financial leakage is sunk money that can only be recaptured by a top flight Risk Management program.

To maximize your capital in 2019, you need to know what you’re leaving on the table. Our firm has the tools and expertise needed to help you do that.

In fact, not only will we help you measure the controllable leakage inside your cost structure, we will demonstrate exactly how much profit and capital you can recapture by implementing a solid, results-driven risk management program. Let’s get started today!

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Plug Your Biggest Financial Sinkhole

What if you knew your operational Risk Management Costs were out of control? What if they were up to 50% more than they should be? What are you doing today about the financial leakage presently robbing your EBITDA by a significant amount?

Moreover, this additional expense is ON TOP of your insurance premiums. Uncovering it requires a complete, data-driven assessment of your true cost structure. Most importantly, it necessitates a specific plan of action to mitigate the damage.

As certified Analytic Brokers we are uniquely qualified to do what traditional brokers cannot - identify, quantify, and attack your financial leakage with proven tools and resources.

It’s time to plug the biggest financial sinkhole inside of your business operation.

Plug Your Biggest Financial Sinkhole

To get started, contact us today. We’ll provide you with a complimentary Financial Leakage Report that will pinpoint the wasted capital inside of your cost structure. Then, we’ll offer some critical solutions to improve your financial outlook.

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It’s not your fault this hidden leakage exists, but now is the time to do something about it.

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!

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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.

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