Analytical Services
How do you know if a guaranteed cost plan, loss sensitive plan, deductible plan or self-insurance is best for your company at this particular point in time? Clearly, one plan is not best suited for every company under different market conditions. Does your agent perform an analysis to determine which plan is optimal for you at this point in time? If so, have you reviewed a report? Or, is the decision being made based on opinion without the benefit analysis? Do you know if your agent’s recommendation is based on an analysis or on commissions paid?
Analytical services include sensitivity analysis, plan comparisons, cost allocation, buy sell analysis, and experience modification factor projections.
Sensitivity analysis are “what if” scenarios
- What happens to my experience modification factor if payroll assigned to a specific classification changes?
- What happens if total claims increase (or decrease) by some amount?
Plan comparisons
- At what point is a different insurance plan financially attractive?
- Is the plan I’m on currently the most attractive going forward?
Cost allocation
- Which company, division, state, etc. is experiencing the highest claim experience?
- Which company, division, state, etc. is experiencing the least claim experience?
- Is the cost associated with claims experience, safety program, and risk management costs properly reflected in the company, division, state, etc. profit and loss statement.
Buy/Sell analysis
- If we purchase a certain company; what will the impact be on our current mod? Future mod?
- If we sell a company, division, etc; what will the impact on our mod be?
Mod projections
- What will our mod be next year assuming certain losses and payroll?
