Spring has just begun – and chances are, an insurance review is probably not top-of-mind right now with your business. With the two busiest months for both Health Insurance and Property and Liability Insurance reviews in December and January, why should it be?
The truth is, taking advantage of a longer time frame before peak months could yield significant benefits for your business. Combined with the added value that Expense Reduction Analysts (ERA) can bring to the table, you could gain critical competitive advantages.
Here are three reasons why you should start your insurance review now, and how ERA Group can help:
1. More Time to Engage Competitive Tensions
Take advantage of the extra months and have your insurance broker complete their renewal now, and before you put away the three-ring binder, engage with ERA for a complete assessment. An ERA Insurance Category Expert can review your renewal documents and utilize the next four or five months to engage competitive tensions – ensuring your broker is not just merely obtaining a renewal from the incumbent insurance company (and not exploring all competitive options).
2. You Have More Time to Obtain Necessary Renewal Assistance
When it comes to Health Insurance renewals, obtaining the right services are crucial during the engagement process. ERA often accomplishes savings by understanding that options may be available to you that your broker has not explored in the marketplace. Knowing all available options sooner could help you to obtain the best possible outcome.
3. Prevent Unnecessary Rate Increases
The Property and Liability arena is different because unless your broker is engaging competitive tensions, they cannot prevent rate increases from happening.
It is important to note that your broker makes the same amount of money when they market your account and when they merely renew the policies with the incumbent insurance company(ies), so do not agree to accept your incumbent insurance company(ies) renewal without evidence that your broker engaged competitive tensions.
Maybe your broker has convinced you the sizable rate decrease in the past could not remain because of past claims. What has your broker done for you to reduce claims? Did they complete a claim review with that busy adjuster to ensure your claims were reviewed and closer to closing? Accounts having dozens of claims need claim reviews completed every quarter.
Additionally, your broker may ask you if it is alright to obtain a renewal from your incumbent insurance company if a significant marketing effort took place during the past year or two. Be cautious, because if your broker has not engaged competitive tension, this could make you vulnerable for additional rate increases at renewal.
While ERA understands that a full marketing effort is not wise year after year as insurance companies grow weary of underwriting without success year after year, some competitive tension is needed to prevent a rate increase from happening, especially if there are no claims. Chances are, there is one insurance company available that would add a competitive bid.
About the Author:
Marlys Schmitt is an experienced Principal Consultant of Expense Reduction Analysts (ERA) in Minnesota. As an advisor and advocate, her focus is to build strong relationships and deliver comprehensive cost containment solutions for her CEO and CFO clients. During her tenure with ERA Group, Ms. Schmitt has led reviews of over $20 million in expenses and completed over 100 client projects.
Marlys has an average cost savings of 18.5%. In 2012, ERA elected Schmitt as the Insurance Practice Chair comprised of eight consultants throughout the United States, who focus on insurance and risk management project reviews. Marlys’ particular expertise in Insurance and Risk Management includes her ability to analyze coverages, perform and consult on risk management services, advise on claim expertise, and manage broker relationships. Marlys is an expert at obtaining the broadest coverages at the most comprehensive premiums for her clients. Marlys is asked by many of her clients to assist in driver safety programs, abuse prevention and investigation, OSHA safety, corporate safety plan development, coverage reviews and benchmark studies.