Reduce financial leakage and improve the bottom line.

1. CONSULTATIVE INSURANCE BROKER
REDUCE FINANCIAL LEAKAGE | IMPROVE BOTTOM LINE

2. PAY ATTENTION IF YOU WANT
TO LOWER EXPENSES,
INCREASE THE BOTTOM LINE
AND GROW YOUR VALUATION

3. 4 WAYS TO BUY INSURANCE:
RELATIONSHIPS SPREADSHEET BROKER SELECTION BUSINESS KPIs

4. METHOD #1
PEOPLE LIKE TO BUY FROM
PEOPLE THEY LIKE!
RELATIONSHIPS

5. TOP 10 CARRIERS WRITE 61%
OF THE PREMIUM WRITTEN BY
THE TOP 50 CARRIERS
61%
39%

6. TOP 10 GLOBAL REINSURERS
WRITE 68% OF PREMIUM
WRITTEN BY TOP 50
68%
32%

7. COME ON,
HOW LARGE COULD THE
PREMIUM DIFFERENCE BE? WHY
NOT BUY FROM A …

8. CLUB MEMBER

9. GOLF BUDDY

10. FAMILY MEMBER

11. QUESTION #1:
DOES YOUR PERSONAL
RELATIONSHIP PRODUCE THE
BEST RESULTS FOR YOUR
BUSINESS?

12. METHOD #2
BID IT OUT!
SPREADSHEET

13. DEVELOP BID SPECS
COMPARE APPLES TO APPLES
ASSIGN MARKETS
OBTAIN QUOTES
SPREADSHEET
SELECT LOW PRICED CARRIER
13

14. TOP 10 REVIEW:
61%
39%
68%
32%
CARRIERS REINSURERS

15. LOSSES
LOSS
ADJUSTMENT
EXPENSE
EXPENSE
PROFITS

16. LOSSES
LOSS
ADJUSTMENT
EXPENSE
PROFITS
EXPENSE
NEGOTIATION
AREA

17. SAVINGS?
NOT REALLY UNLESS YOUR
AGENT HAS BEEN SKATING AND
NOT PAYING ATTENTION

18. OR A NEW PLAYER DROPS
INTO THE MARKETPLACE

19. QUESTION #2:
DO YOU REALLY WANT THE
LOW COST CARRIER TO DECIDE
WHO’LL BE YOUR BROKER?

20. METHOD #3
EVALUATE AND DECIDE
BROKER SELECTION

21. CARRIER SELECTION
ABILITY TO NEGOTIATE
KNOWLEDGE OF YOUR INDUSTRY
COVERAGE REVIEW
QUICK RETURN OF CALLS
CONTRACT REVIEWS
CERTIFICATES OF INSURANCE
AUTO I.D. CARDS
TIMELY RENEWALS
POLICY ISSUANCE
TEAM OF WELL DRESSED PEOPLE

22. BEST IN SHOW

23. QUESTION #3:
AREN’T THESE “ME TOO”
SERVICES

24. AND SHOULDN’T THEY BE
THE PRICE OF ADMISSION?

25. METHOD #4
BUSINESS ANALYSIS LIKE
ANY OTHER DECISION
BUSINESS KYI’s

26. IT’S ABOUT THE INCOME
STATEMENT! HOW WILL
THE DECISION DECREASE
YOUR EXPENSE AND GROW
YOUR BOTTOM LINE?

27. LOSSES
ADMINISTRATIVE
EXPENSE
RISK FINANCING

28. LOSSES
LOSS
ADJUSTMENT
EXPENSE
EXPENSE
PROFITS

29. LOSSES
LOSS
ADJUSTMENT
EXPENSE
PROFITS
EXPENSE
AREA OF
IMPACT

30. DIRECT LOSS COSTS:
DEDUCTIBLE EXPENSE
SELF INSURED RETENTION
ALLOCATED ADJUSTMENT EXPENSE
UNINSURED LOSSES

31. LOSSES
INDIRECT LOSSES
EXPENSE
RISK FINANCING

32. DIRECT LOSS COSTS ARE
VISIBLE ABOVE THE WATER

33. MEDICAL COSTS
INDEMNITY PAYMENTS
LOSS ADJUSTMENT EXPENSE

34. THE REALLY SCARY
THREATS TO YOUR
BOTTOM LINE ARE
INDIRECT LOSS
COSTS LURKING
BELOW THE SURFACE

35. WORKER LOST TIME
JOB ACCOMMODATIONS
COWORKER & SUPERVISOR
LOST PRODUCTIVITY
TRAINING COSTS
OVERTIME COSTS
SCHEDULE DELAYS
FOCUS AWAY FROM
PROFITS
TIME SPENT WITH LEGAL
OSHA INVESTIGATION
COMPANY REPUTATION

36. OSHA: RATIO OF INDIRECT
TO DIRECT COSTS
0
1
2
3
4
5
$0 - 2,999 $3,000 - 4,999 $5,000 - 9,999 $10,000 +
1.11.2
1.6
4.5

37. HOW CAN A BROKER HELP?

38. CLAIMS RESOURCES:
CARRIER OVERSIGHT
HANDLING AND RESERVES
BENCHMARKING
TRAINING PROGRAMS
RETURN TO WORK
MOD VERIFICATION
PROPERTY LOSS SUPPORT
COVERAGE ASSIST

39. LOSS CONTROL RESOURCES:
ASSIST WITH LOSS
AVOIDANCE, THROUGH
PREVENTION OR RISK
TRANSFER, AND REDUCTION
WHEN LOSSES OCCUR

40. LOSSES
INDIRECT LOSSES
ADMINISTRATIVE
RISK FINANCING

41. WHERE CAN A BROKER ASSIST?

42. ADMINISTRATIVE EXPENSE:
HUMAN RESOURCES
SAFETY SERVICE
CLAIMS ADMINISTRATION
CONTRACT REVIEW
REGULATORY COMPLIANCE
SPECIAL PROJECTS

43. LOSSES
INDIRECT LOSSES
ADMINISTRATIVE
RISK FINANCING

44. RISK FINANCING:
PREMIUM
TAXES
DIVIDENDS
RETRO ADJUSTMENTS
BROKERAGE FEES

45. LOSSES
INDIRECT LOSS COSTS
ADMINISTRATION EXPENSE
RISK FINANCING
BOTTOM LINE

46. QUESTION #4:
YOUR DECISION?
RELATIONSHIPS SPREADSHEET BROKER SELECTION BUSINESS KPIs

47. iRisk.info
slideshare.net/iriskinfo