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?”
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.
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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?”
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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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.
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.
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.
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:
- Ask your current broker to provide you with a financial measurement of their performance. How has their work helped you meet business challenges?
- 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.
- 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.
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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.
To maximize your financial performance in 2019, here’s what you should do now:
- 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.
- 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).
- 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.
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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.
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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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.
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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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.
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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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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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?
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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