Many finance people have trouble figuring out what their Total Cost of Risk is - let alone how to control or reduce it.
Often, your current insurance broker may not have the means nor even understand the means to control and reduce TCOR.
The following are a few simple areas where a broker can in partnership with the finance team effect the TCOR and thus Growth, Cost Containment, Asset Protection and utlimately Business Continuity.
* Coverage and policy audits: To limit the company's exposure to un-covered claims, know what you are covered for and better, what many coverage enhancements are available.
* Benchmarking and CAT Modeling: To ensure that the company is not overinsured OR underinsured - and thus exposed to unpaid claims.
* Claims reviews: Monitoring reserves, safety and back to work initiatives, fraud awareness can go a long way in mitigating loss ratios and thus experience mods.....
* Experience Mod Audits: 90% of mod audits result in return premiums to companies. Don't let the NCCI or other agencies penalize you unjustifiably.
* Classification Reviews: A good broker will dictate to the carrier how his client should be rated - and thus charged. Don't leave it up to the insurance carrier.
* Loss forecasting: A good broker advocate with the right tools, can 'paint' a better loss picture - no matter how detrimental - to the carrier. Again pre-empting the carriers attempts to profit unneccessarily at your expense.
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