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.

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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.

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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.

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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.

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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.

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.

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