In this session, Kurt Murray, Principal at Assurance Agency, and Rachael Rodakowski, Account Executive at Assurance Agency, discuss how to measure individual customer profitability encompassing all costs of operating a staffing business. This will predominantly integrate the highly variable workers compensation component of the agency's cost structure. During the session, they demonstrate how to determine actual workers compensation claims and compare those to expected claims in order to measure and benchmark customer's performance against standard metrics. Integral to this is incorporating the Temps Works software platform and report capabilities in order to track and measure results.
Total cost of ownership is a philosophy for really understanding all supply chain related costs of doing business with a particular supplier for a particular good or service (Lisa Ellam, May 1999)
Three Components of Total Cost
Acquisition Costs
Ownerships Costs
Post-Ownership Costs
Purchase Price: But One Component of Cost
TCO, Net Present Value Analysis (NPV), and Estimated Costs
The Importance of Total Cost of Ownership in Supply Management
Service Providers
Retail
Manufacturing
this presentation deals with two big standard-setting bodies IFAC and ICAEW, their governance, their members, history, salary, syllabus, opportunities, auditing activities, and A CASE STUDY
Evaluating Subcontractor Accounting Systems & RatesRobert E Jones
Govology
Whether you’re the prime or a sub, learn essentials of financial oversight for a smooth working relationship. Primes are responsible for the review and oversight of their subs including accounting system compliance and evaluation of price and related factors.
Come learn what to look for in healthy financial system.
• Prior system approval
• Use of a third-party in surveying the system, developing budgets, or reviewing rates
• Time since last system survey or rate audit
• Consistency in and effective rate management
Subcontractors need to understand the proper way to develop rates. Primes need to understand how to evaluate rates, especially when comparing rates among multiple subcontractors. Rates vary from industry-to-industry and contractor-to-contractor. One must understand the composition and structure of rates as a mere comparison of numbers does not deem a rate high, low, or incorrect.
We'll discuss your options (including the pros and cons) for financial oversight including:
Use of internal resources
Requesting agency survey of system or review of review
Hiring a third-party
Join us to learn best practices for ensuring financial stability and building solid relationships with your prime or sub.
Learning Objectives
1. Define the cost pools and indirect rates utilized by government contractors
2. Describe the difficulty of comparing rates among contractors
3. List options for the evaluation of rates
4. Identify the risks in evaluating contractor systems and rates
www.leftbrainpro.com
Govology webinar - Evaluating Subcontractor Accounting Systems and RatesRobert E Jones
Whether you’re the prime or a sub, learn essentials of financial oversight for a smooth working relationship. Primes are responsible for the review and oversight of their subs including accounting system compliance and evaluation of price and related factors.
Come learn what to look for in healthy financial system.
• Prior system approval
• Use of a third-party in surveying the system, developing budgets, or reviewing rates
• Time since last system survey or rate audit
• Consistency in and effective rate management
Subcontractors need to understand the proper way to develop rates. Primes need to understand how to evaluate rates, especially when comparing rates among multiple subcontractors. Rates vary from industry-to-industry and contractor-to-contractor. One must understand the composition and structure of rates as a mere comparison of numbers does not deem a rate high, low, or incorrect.
We'll discuss your options (including the pros and cons) for financial oversight including:
Use of internal resources
Requesting agency survey of system or review of review
Hiring a third-party
Join us to learn best practices for ensuring financial stability and building solid relationships with your prime or sub.
The secondary market research challenge in Pharma - An inside view on how to overcome the perceived market monopoly
Data, Analytics and Consulting services are an integral part of a pharmaceutical company’s pre and post drug launch activities. These organizations spend anywhere between USD 30 million to USD 50 million on a single service provider while sourcing various secondary market research services. These services provide them with indispensable insights about patients, payers, prescribers, drug positioning and so much more.
However, the number of global service providers in the market has not grown in tandem with the increasing demand for quality pharmaceutical data, analytics and consulting. This, in turn, has resulted in not only the lack of choice of service providers at a global scale, but also single supplier dominance in the secondary market research space.
Watch Beroe’s Senior Research Analysts, Angad Singh as he shares insights on how to negate the stiff challenges that pharmaceutical organizations face in order to effectively source secondary pharmaceutical market research.
About the speaker:
Angad Singh - Angad Singh is a Marketing Services - Mass Communications expert at Beroe Inc. He specializes in providing primary & secondary market research related procurement intelligence to Fortune500 companies and identifying key trends with respect to several end-use industries of primary & secondary market research. In his 3 years at Beroe, Angad has built extensive knowledge and expertise in categories including printing and fulfilment, market research, in-store promotions and merchandizing. He has written and published several thought leadership papers. Some of the topics he has covered in his papers include “The secondary market research challenge in pharma - An inside view” and “Market Research - Emerging Markets and The Never Ending Role of Technology”.
Total cost of ownership is a philosophy for really understanding all supply chain related costs of doing business with a particular supplier for a particular good or service (Lisa Ellam, May 1999)
Three Components of Total Cost
Acquisition Costs
Ownerships Costs
Post-Ownership Costs
Purchase Price: But One Component of Cost
TCO, Net Present Value Analysis (NPV), and Estimated Costs
The Importance of Total Cost of Ownership in Supply Management
Service Providers
Retail
Manufacturing
this presentation deals with two big standard-setting bodies IFAC and ICAEW, their governance, their members, history, salary, syllabus, opportunities, auditing activities, and A CASE STUDY
Evaluating Subcontractor Accounting Systems & RatesRobert E Jones
Govology
Whether you’re the prime or a sub, learn essentials of financial oversight for a smooth working relationship. Primes are responsible for the review and oversight of their subs including accounting system compliance and evaluation of price and related factors.
Come learn what to look for in healthy financial system.
• Prior system approval
• Use of a third-party in surveying the system, developing budgets, or reviewing rates
• Time since last system survey or rate audit
• Consistency in and effective rate management
Subcontractors need to understand the proper way to develop rates. Primes need to understand how to evaluate rates, especially when comparing rates among multiple subcontractors. Rates vary from industry-to-industry and contractor-to-contractor. One must understand the composition and structure of rates as a mere comparison of numbers does not deem a rate high, low, or incorrect.
We'll discuss your options (including the pros and cons) for financial oversight including:
Use of internal resources
Requesting agency survey of system or review of review
Hiring a third-party
Join us to learn best practices for ensuring financial stability and building solid relationships with your prime or sub.
Learning Objectives
1. Define the cost pools and indirect rates utilized by government contractors
2. Describe the difficulty of comparing rates among contractors
3. List options for the evaluation of rates
4. Identify the risks in evaluating contractor systems and rates
www.leftbrainpro.com
Govology webinar - Evaluating Subcontractor Accounting Systems and RatesRobert E Jones
Whether you’re the prime or a sub, learn essentials of financial oversight for a smooth working relationship. Primes are responsible for the review and oversight of their subs including accounting system compliance and evaluation of price and related factors.
Come learn what to look for in healthy financial system.
• Prior system approval
• Use of a third-party in surveying the system, developing budgets, or reviewing rates
• Time since last system survey or rate audit
• Consistency in and effective rate management
Subcontractors need to understand the proper way to develop rates. Primes need to understand how to evaluate rates, especially when comparing rates among multiple subcontractors. Rates vary from industry-to-industry and contractor-to-contractor. One must understand the composition and structure of rates as a mere comparison of numbers does not deem a rate high, low, or incorrect.
We'll discuss your options (including the pros and cons) for financial oversight including:
Use of internal resources
Requesting agency survey of system or review of review
Hiring a third-party
Join us to learn best practices for ensuring financial stability and building solid relationships with your prime or sub.
The secondary market research challenge in Pharma - An inside view on how to overcome the perceived market monopoly
Data, Analytics and Consulting services are an integral part of a pharmaceutical company’s pre and post drug launch activities. These organizations spend anywhere between USD 30 million to USD 50 million on a single service provider while sourcing various secondary market research services. These services provide them with indispensable insights about patients, payers, prescribers, drug positioning and so much more.
However, the number of global service providers in the market has not grown in tandem with the increasing demand for quality pharmaceutical data, analytics and consulting. This, in turn, has resulted in not only the lack of choice of service providers at a global scale, but also single supplier dominance in the secondary market research space.
Watch Beroe’s Senior Research Analysts, Angad Singh as he shares insights on how to negate the stiff challenges that pharmaceutical organizations face in order to effectively source secondary pharmaceutical market research.
About the speaker:
Angad Singh - Angad Singh is a Marketing Services - Mass Communications expert at Beroe Inc. He specializes in providing primary & secondary market research related procurement intelligence to Fortune500 companies and identifying key trends with respect to several end-use industries of primary & secondary market research. In his 3 years at Beroe, Angad has built extensive knowledge and expertise in categories including printing and fulfilment, market research, in-store promotions and merchandizing. He has written and published several thought leadership papers. Some of the topics he has covered in his papers include “The secondary market research challenge in pharma - An inside view” and “Market Research - Emerging Markets and The Never Ending Role of Technology”.
- Sources of Spend Data
- Turning Data into Information
- Identifying Opportunities and Prioritization
- Spend Analysis and Managing Categories
- Identifying Actions
Cost Reduction Strategies for Small Businesses & StartupsSGI Consultants
Running out of money is the most common cause for small businesses closing down, its not that they did not make a profit, its that they ran out of cash.
Reducing costs should be a priority for all businesses.
E Procurement Explained, Need, Key Features, Benefits and Case Studies:
1. E-Procurement in Government of Andhra Pradesh, India
2. E-Procurement by Indian Railways
3. IBM's B2B e-Procurement
4. Rolls Royce e-Procurement
5. Hewlett-Packard’s e-Procurement System
Client Profitability: A Tether to RealityPerformLaw
This presentation discusses the most reliable methods for computing client profitability.Also reviewed are the various uses of client profitability data in recruiting, compensation, client pricing, alternative fee agreements, workload distributions and overhead control while identifying the pitfalls to avoid.
Client Profitability: Analysis to ActionPerformLaw
This informative presentation will cover the following:
- The most reliable methods for computing client profitability
- The more common methods for allocating direct and indirect costs
- The various uses of client profitability data in compensation, client pricing, overhead control, recruiting and other significant functions of the firm.
-The pitfalls to avoid and methods to overcome partner fears about calculating client profitability for the first time.
Calculating Client Profitability: Analysis to ActionPerformLaw
As law firms continue to embrace profitability reporting, the core competence of law firm partners will improve, and better decision-making will occur. This informative presentation will cover the following:
- The most reliable methods for computing client profitability
- The more common methods for allocating direct and indirect costs
- The various uses of client profitability data in compensation, client pricing, overhead control, recruiting and other significant functions of the firm.
-The pitfalls to avoid and methods to overcome partner fears about calculating client profitability for the first time.
The US insurance market is transforming rapidly and this is driven by changing buyer needs, ability to use analytics and technology to provide seamless customer experience and more so, the ability to manage costs across the insurance value chain
Proficient Biller: Using KPIs to Optimize Your BusinessKareo
Learn how to read between the numbers and identify ways to make your business even more successful. Take a deep dive into your current KPIs and learn how you can take your revenue potential to the next level.
Reviews the importance of the claims payment process and how that moment of truth can define the competitive advantage of an insurance company. Focus is on how understanding and improving the process of claims payment benefits market share and organic growth.
what is valuation of a company, reasons for valuation, various methods of valuation, preferred methods to value an E-commerce industry, various factors to consider while valuing an E-commerce industry
Integrated Order to Cash (O2C) Automation Software for Global Shared Services...Emagia
Integrated Order to Cash (O2C) Automation Software for Global Shared Services
https://www.emagia.com/resources/ebooks/integrated-otc-transformation-for-global-shared-services-organizations/
- Sources of Spend Data
- Turning Data into Information
- Identifying Opportunities and Prioritization
- Spend Analysis and Managing Categories
- Identifying Actions
Cost Reduction Strategies for Small Businesses & StartupsSGI Consultants
Running out of money is the most common cause for small businesses closing down, its not that they did not make a profit, its that they ran out of cash.
Reducing costs should be a priority for all businesses.
E Procurement Explained, Need, Key Features, Benefits and Case Studies:
1. E-Procurement in Government of Andhra Pradesh, India
2. E-Procurement by Indian Railways
3. IBM's B2B e-Procurement
4. Rolls Royce e-Procurement
5. Hewlett-Packard’s e-Procurement System
Client Profitability: A Tether to RealityPerformLaw
This presentation discusses the most reliable methods for computing client profitability.Also reviewed are the various uses of client profitability data in recruiting, compensation, client pricing, alternative fee agreements, workload distributions and overhead control while identifying the pitfalls to avoid.
Client Profitability: Analysis to ActionPerformLaw
This informative presentation will cover the following:
- The most reliable methods for computing client profitability
- The more common methods for allocating direct and indirect costs
- The various uses of client profitability data in compensation, client pricing, overhead control, recruiting and other significant functions of the firm.
-The pitfalls to avoid and methods to overcome partner fears about calculating client profitability for the first time.
Calculating Client Profitability: Analysis to ActionPerformLaw
As law firms continue to embrace profitability reporting, the core competence of law firm partners will improve, and better decision-making will occur. This informative presentation will cover the following:
- The most reliable methods for computing client profitability
- The more common methods for allocating direct and indirect costs
- The various uses of client profitability data in compensation, client pricing, overhead control, recruiting and other significant functions of the firm.
-The pitfalls to avoid and methods to overcome partner fears about calculating client profitability for the first time.
The US insurance market is transforming rapidly and this is driven by changing buyer needs, ability to use analytics and technology to provide seamless customer experience and more so, the ability to manage costs across the insurance value chain
Proficient Biller: Using KPIs to Optimize Your BusinessKareo
Learn how to read between the numbers and identify ways to make your business even more successful. Take a deep dive into your current KPIs and learn how you can take your revenue potential to the next level.
Reviews the importance of the claims payment process and how that moment of truth can define the competitive advantage of an insurance company. Focus is on how understanding and improving the process of claims payment benefits market share and organic growth.
what is valuation of a company, reasons for valuation, various methods of valuation, preferred methods to value an E-commerce industry, various factors to consider while valuing an E-commerce industry
Integrated Order to Cash (O2C) Automation Software for Global Shared Services...Emagia
Integrated Order to Cash (O2C) Automation Software for Global Shared Services
https://www.emagia.com/resources/ebooks/integrated-otc-transformation-for-global-shared-services-organizations/
2019-05 Maximize Your Revenue with 3 Key Medical Billing KPIsKareo
In this webinar, Wesley Stolp, Kareo’s Solutions Director for the Managed Billing service, will teach you how to analyze your practice’s financial health, using the tools you already have to help you get paid and save time.
Wes’ in-depth review of revenue cycle management will include:
-Common practice management pitfalls that generate missed revenue opportunities
-The 3 key KPIs you need to analyze your entire billing report and how they work together to create a successful business
- Which revenue levers will help you expand your current earnings
Your practice has the potential to generate more revenue - the key is knowing where to look.
From ITC Agent Conference 2016...
This breakout will cover the key data points you need to manage in order to improve efficiencies and increase profits within your agency. Today, data comes in multiple facets from websites, management systems, phone systems, rating systems and other sources. You will learn to recognize these key data elements and understand how to use this data to make better decisions that will lead to more profits.
Similar to The Works 2018 - Funding Track - Workers Compensation Insurance - Assurance Agency (20)
The Works 2019 - Breakout Session: Security Clearance David Dourgarian
Security groups, security roles, and team assignments: In this breakout session, you receive an explanation of the differences between security groups in Beyond versus security roles in Enterprise and how team functionality in Beyond can help your managerial staff.
The Works 2019 - Breakout Session: Mission Strategy and Operational ChangesDavid Dourgarian
In this breakout session, Casey Kraus, President of TempWorks Software, and Mari Kautzman-Knoll, COO, provide some insight into the growth strategy and operational changes that TempWorks has experienced over the last few years.
The Works 2019 - Breakout Session: Under Surveillance: Clues to Rethink Your ...David Dourgarian
Top Lone Oak Payroll operatives decipher common back office headaches faced by growing staffing companies. In this session, they’ll cover the benefits and challenges of keeping back office functions inhouse versus outsourcing them, including how to evaluate current processes for payroll processing, tax management, collections (A/R) management, and payroll funding.
The Works 2019 - General Session: The Back Office Black BookDavid Dourgarian
Tips and Tricks every payroll/invoicing agent should equip themselves with before entering the field. Join AJ Swanson, Lead Corporate Trainer, as he opens his black book to share his secret tips and strategies on maximizing your efficiency for back office.
The Works 2019 - General Session: HRCenter Command PostDavid Dourgarian
In this session, Shawna (Bradt) Evans and William Dewey dive into tips on how to optimally configure the tenant section of HRCenter. In addition, these HRCenter experts will deliver best practices when it comes to Recruiter First Workflows.
The Works 2019 - General Session: Beyond Base Camp David Dourgarian
Join the Beyond experts for tactical training on how to release Beyond to their Agents and how to take advantage of the classified Beyond functionality not available in Enterprise. Attendees will leave with the knowledge that allows them to accomplish their Beyond Roll-Out Mission.
The Works 2019 - General Session: Integration Partner Secrets DecodedDavid Dourgarian
Our integration partners’ secrets have been decoded! In this session, Genia Friscone, Director of Strategic Alliances, reveals the codebook behind our integration partners to unveil all their covert functions. In addition, Genia will unmask the integration partner plans to infiltrate TempWorks Beyond.
The Works 2019 - General Session: Mission Control: New Asset Debrief David Dourgarian
In this session, our top-level development experts from mission control dive into the details of our latest development assets, including TempWorks Buzz and Beyond.
The Works 2019 - General Session: Top Secret Security Clearance: Primary Miss...David Dourgarian
In this session, we release classified mission details from the TempWorks development roadmap. The TempWorks roadmap is a highly coveted asset and your mission is to understand what it is and how it will impact your staffing agency.
The Works 2018 - Software Track - Home Room: Enhancements, New Products, and Q&ADavid Dourgarian
This session addresses all the questions that you have about our latest software solutions, including Beyond and Buzz, or new upgrades, including WebCenter. Learn more about what’s new and what’s in the development pipeline from Kevin Prow, Chief Information Officer.
The Works 2018 - Software Track - Development 101: Build Using API and Overvi...David Dourgarian
Want to learn more about how to build using API? Curious about API3 and exactly what it is and how it works? This is the session for you! Join Paul Czywczynski, Chief Technology Officer, as he takes you step-by-step through these processes.
The Works 2018 - Industry Track - Intro to Technology: Tech Trends and the St...David Dourgarian
It’s tough to keep up with the latest technology trends and even tougher to judge how it will impact your business. Join us for this session as Paul Czywczynski, Chief Technology Officer, talks you through current and future technology trends and the potential impact it will have on the staffing industry.
The Works 2018 - Software Track - Pop Quiz - New Hire FAQDavid Dourgarian
When you hire a new recruiter, sales person, or payroll processor, can you answer their TempWorks questions? See if you ace or fail this interactive quiz led by Alisha Santoorjian Thunstrom, Director of Support Services, and Shawna Bradt, Implementation Manager.
The Works 2018 - Software Track - Integration Partners OverviewDavid Dourgarian
Interested in learning more about our integration partners? Then you don’t want to miss this session as Susan Wurst, Vice President of Account Management, provides an overview of our current integration partners as well as covers potential integrations in the pipeline.
The Works 2018 - Software Track - Cheat Sheet - Complete Study Guide to BeyondDavid Dourgarian
Do you know a little about Beyond, but not enough to pass an exam on the topic? This course is for you! In one session, learn the best tips and tricks from AJ Swanson, Corporate Trainer,
and become an A+ Beyond user!
The Works 2018 - Software Track - School Spirit - Branding with TempWorks Pro...David Dourgarian
Do you want your TempWorks web products to shout your brand with the colors and logos
that represent your company? Presented by Ann Waskosky, Corporate Trainer, and Tim Vossen, Senior Web Developer, this session teaches you how to embed your brand in our
TempWorks products.
The Works 2018 - Software Track - Cramming for Finals - Year-end Study GuideDavid Dourgarian
In this session, Andy Bach, Specialty Support Technician, covers some best practices for closing out the year. Topics to be covered: The year-end process for W-2 creation and tax files, fringe benefit tracking, and other tips for a smooth end of the year.
If you’re looking to improve your sales processes then don’t miss this session as Regan Brown, Regional Vice President of Sales, shows you the top tips and tricks to motivate your sales team, streamline your sales processes, and increase your bottom line.
The Works 2018 - Industry Track - Ineffective Onboarding Driving Away EmployeesDavid Dourgarian
Are your current onboarding processes in line with best practices or are they inadvertently driving new team members away? In this session, Allan Brown, Senior Vice President, discusses the do’s and do not’s of onboarding in the staffing industry and offers tips on how you can easily improve your current onboarding techniques.
The Works 2018 - Industry Track - Cybersecurity for Staffing AgenciesDavid Dourgarian
What cybersecurity measures do you have in place? If you’re not sure your safety measures are up to par with cybersecurity threats, then this is a session you won’t want to miss. Paula Sanchez, Talent Acquisition and Process Manager/Facility Security Officer for NSC Technologies, leads this session and delivers helpful tips and information about raising employee awareness, employing a risk assessment approach, updating password policies, phishing, protecting PII, and incident reporting.
2. Assurance by the Numbers
• Top 50 U.S. brokerage (privately held)
• 500 employees and growing
• 6,000+ clients nationwide
• 3 office locations: Schaumburg, IL, Chicago, IL and Mid-
Atlantic (D.C.)
• $1Billion+ in insurance premiums placed
• 98% client recommendation ratio
• 100+ awards for workplace culture, leadership and overall
excellence
3. Staffing Practice Overview
• Size
• 600+ clients nationwide
• $250MM+ total premiums place
• Reach
• 40+ local, regional and national workers’ comp carriers
• 15+ industry trade associations
• Smarts
• 25 years as a staffing & PEO practice
• 50 staffing & PEO focused insurance professionals
• 35 insurance designations
6. Overview
• Importance of client screening
• Tracking client loss results
• Types of client profitability analysis
• Tempworks’ capabilities in relation to the study
• Review Actual Studies:
• Expected vs. Actual Loss Analysis
• Client Profitability Analysis
• How is this used? Why is it important?
7. Client Screening Methods to Measure
Safety / Loss History
• Experience Modification Rate
• OSHA Logs & OSHA website
• Site Inspection
• Review of Client Safety Program
• Review of Accident Investigation Procedures
• Review of Training Program and use of PPE
8. Importance of Client Screening
• You want employees working in a safe environment
protected from injuries
• The higher your claims are, the higher the cost of your
workers’ compensation – Guaranteed Cost or Loss Sensitive
• Claims drive work comp pricing
• Even with state rate increases/decreases your pricing will revolve
around your loss pick (expected losses based on past results)
• Work Comp is the 2nd largest expense after payroll
• Cost of coverage significantly impacts your bottom line
9. Tracking Claims by Client
• Actions to take with a customer with poor claim performance:
• Rehabilitate Client
• Terminate Client
• Increase Markup – what is your true cost of this client
considering their claims history and what does the markup
need to be to support their losses?
• Do Nothing
10. Client Analysis Reports
• Expected vs. Actual Loss Results
• Compares client’s actual claim results to their expected results
using historical payroll and industry wide (client) loss costs
• Client Profitability
• Illustrates the total cost of a client vs. the markup
11. Information Needed to Complete the
Study
• Report of claims by client
• Payroll by client by class code by state – 3-5 years preferred
• Markup by client by code (if more than one code for a client)
• FICA, FUTA, SUTA rates
• SG&A
12. Tempworks Integration
• Entering claims and associating them to a client
• Claim by client report
• Payroll report for each policy year by client and code
• Markup report by client and class code
• Tax rates by client and state
16. Expected vs. Actual Loss Analysis
• Payroll – subject payroll per policy term
• Losses – incurred losses currently valued
• LDF – state/client specific loss development factor. Accounts
for loss development, IBNR, re-opened claims, etc.
• Loss Rate – developed claims per $100 payroll
• Loss Cost – industry wide expected cost per $100 payroll
based on historical data
• Expected Losses – payroll divided by 100 multiplied by the
loss cost
17. Expected vs. Actual Loss Analysis - Example
Vegan Direct is running at
less than half the
expected losses – good
performer
Discount Shoes is running
40% above expected
losses – marginal
performer
Well Right is running
significantly over expected
losses – poor performer –
needs further analysis
18. Expected vs. Actual Loss Analysis – 3 Year Total
It’s important to look at the
overall total when evaluating
the action to take
20. Expected vs. Actual Loss Analysis – Loss Sensitive
• 3 Year Loss Rate – from table above
• 17-18 Fixed Cost – per insured’s loss sensitive program
parameters (this is agreed upon at inception per $100
payroll)
• Total Actual Cost – actual 3 year loss rate + fixed cost
• Work Comp Net Rate – guaranteed cost rate, insured used
this for pricing purposes
• This analysis only includes work comp costs. It does NOT
factor in the staffing company’s employment taxes, SG&A,
ACA cost, and profit
22. Expected vs. Actual Loss Analysis –
Guaranteed Cost
• Your final cost is still the “net rate”
• Analysis is still useful to determine loss leaders, clients that
need rehabilitation, etc.
• Losses will impact mod and eventual cost of insurance
25. Client Profitability Analysis – Loss Sensitive
• Uses the Actual Work Comp Cost from the prior analysis
• Adds in Taxes, ACA, SG&A
• Compares “all in cost” to the markup to determine profit
26. Client Profitability Analysis – Loss Sensitive
Example
3 Clients with the same class code
Well Right has performed worse
than expected and is overall
unprofitable
Health RX has performed worse
than expected but is overall
profitable due to the high markup
Maple Mfg. has performed better
than expected but is only
marginally profitable
28. Client Profitability – Guaranteed Cost
• Uses current work comp “net rate” instead of actual client
work comp cost
• Provides protection on poor performing clients but you lose
the benefit of lower cost on clean accounts
29. Alternate Variations – taking a look at
losses/profitability by:
• Branch Office
• Division
• State
• Region
• Class code / niche
• Exposure / specific job duty
30. Top 10 Value of Client Profitability Analysis
1. Determine individual customer profitability
2. Analyze the adequacy of your markups
3. Raise awareness of your financial wellbeing with specific customers
4. Identify poor performance at a particular customer, branch, state, etc.
5. Better able to identify trends and fluctuations in customer performance
6. Determine what relationships are worth retaining
7. Determine where to direct safety and training efforts
8. Establish a baseline and track results of safety initiatives
9. Use as a negotiation basis for requesting a higher markup
10. Use as a performance measure/compensation component for internal employees – by salesperson,
branch, etc.
11. Determine where to direct growth
31. Questions?
Contact Information
Kurt Murray, Principal
kmurray@assuranceagency.com
847.463.7154
Rachael Rodakowski, Account Executive
rrodakowski@assuranceagency.com
847.463.7358
Editor's Notes
Show live Tempworks demo of entering claim and running these reports