Addressing past claims to lower insurance costs

Insurance premiums too high? Quoting won't cure them, better narratives won't negate them and alternative programs, like captives, won't alleviate them...if being driven by a claims frequency problem. Until you fix your claims problem, anything else you try to do to reduce your insurance costs will be a band-aid at best. No agent can fix your claims issues, but a good one can certainly help. They can start by making you aware of the issue and be willing to shoot you straight. Once you're aware they can identify where you can hone in on to fix the claims. After you've identified the root causes, they can provide resources and a plan to help fix them. Last but not least, after you've bought it on solving the problem, they can then convey this story of how you've taken ownership to ensure that your company is a great risk moving forward to the underwriters. Occasionally, I'll here contractors who had a bad loss or a bad year within the last 5 years say "we can't do anything until our claim falls off". This doesn't have to be the case IF you've taken the proper steps to address the problem going forward. There's no guarantee the market will listen, but I've seen it happen many times. And remember, all it takes is one underwriter to believe in you to make a big difference in program and costs.

How do we win new clients 🤷🏽 I’ve posted recently about how we’ve had a good start to the year. Whilst positive, I try to always remain balanced. ‘Never let success get to your head and never let failure go to your heart’ (not my quote but I like it) Anyway, to answer the question: 📱 Client posted on LinkedIn. Requesting help - renewal went from £50k to close to £200k for their fleet insurance 💬 I responded 11pm at night and had a text exchange with the MD. Gave him advice that would help THEM, not me. (Don’t get too many brokers involved, don’t just let people ‘quote’ - look to see what value / approach different brokers will add and then decide who you will allow to represent you) 🛌 The time everyone else woke up, I had a follow up call with the MD, learned a lot about the situation and what they needed and explained how we’d go about helping them. He liked our approach and therefore, decided that he’d like us to explore option. ❌ Long story short, there were only 1 insurer willing to offer an alternative price on the fleet. Eye watering still, but it was a better price. 🧰 For their contractors, I was honest with the client and said from the outset that their current insurer was the right insurer for them, given what they do and that their current broker chose well. The reason their price was so high? 💥Too many crashes, ultimately losing the insurer money. 🗣️ Too many open claims from a long time ago, too many over inflated reserves that have gone unchallenged, therefore making a poor claims picture look a lot worse The answer ✅ Work with insurer and client to clean up their claims. Close off old claims, reduce inflated reserves and help to manage those claims more effectively. overtime, we can reduce the frequency and value of claims which will mean that they are a more appealing proposition for an insurer. This is where an engaged broker as opposed to a transactional relationship, will add value. 🧰 for their contractors, my view, from 20+ years of underwriting was that the rates used were too high. After speaking to the insurer, turns out it was on an old version of the insurers product meaning that it was just too expensive. ⬇️ We managed to negotiate a significant reduction in their year end declaration as well as a 5 figure reduction on their base rates meaning they are with the same insurer but less money AND more cover. We amended the structure so that it was more fit for purpose in terms of what the client needed in the event of a claim. Since then: We’ve had x2 face to face meetings, several meetings with insurers and helping them with a variety of other insurances which will help them win decent contracts. So, 3 brokers, all had access to the same quotes from same insurers and we were successful. The real reason businesses use us? - we make their problems, our problems! Another amazing business to work with for years to come. #construction #contractors #financedirector #director #fleet

Your insurance claim history is hurting your business without you even knowing it. One client was facing a $350,000 claim, but with the right approach, we reduced it to $120,000. When insurance companies first get involved in claims, they set something called a “reserve.” This reserve is an estimate based on their data of what the claim might cost, including medical expenses, lost wages, vehicle and property damage, and other related costs. As the claim progresses, the damages are paid out accordingly, and the insurance carrier may negotiate a settlement amount with the claimant. This settlement is a negotiated value based on the specifics of the case. However, insurance companies sometimes don’t update the reserve in a timely manner, which can take months. This can leave a business owner’s loss history inflated, potentially impacting their renewal negatively. A proactive broker will regularly review loss history, especially focusing on "shock losses," and work with the insurance carrier to reduce reserves as quickly as possible. In this case, after working with the carrier, we were able to reduce the reserve to $120,000, a significant improvement from the original $350,000. #franchise #franchising

Claims are usually a reflection of an underlying business problem. If you want an underwriter to look past that problem, you have  to explain the problem, and how you’re going to fix it. I was looking at an auto repair shop with 2 locations that’s being non-renewed for claims. They had 5 claims for damaged to people’s engines because the oil change was done improperly. They’ve had 7 workers compensation claims. It turns out that that all these claims happened at one location. This location is one of the busiest in the nation for their brand and works on 80 cars a day. They were struggling to stay staffed to keep up with the workload. The solution to the problem isn’t just more training. They’re hiring a new manager for the store. They’re going to pay more to get better people in the building. They’re implementing a stricter training regimen. And they’re shortening store hours to handle less cars to make sure they’re properly staffed for the workload. If you’ve had claims, that’s the kind of narrative that can help an underwriter understand the corrective action you’re taking to fix the problem. #claims #insurance #negotiation