Out of Control Casualty Insurance Costs
Assurance provided concrete solutions and created a $2.2M savings.
A staffing company focusing on the energy sector with over $15 million in payroll approached numerous national brokers and Assurance to assist them with their casualty insurance program. The company was looking for investment from outside entities and could not move forward until they got their casualty insurance costs under control.
Assurance was the only broker able to provide an action plan inclusive of deliverables within the time frame allotted. The other brokers presented theory only, and their solutions were to request a broker of record change without concrete deliverables. We worked with the client to change their program structure, reforecast all historic losses to improve their loss picture and renegotiated prior premium audits.
The final result was a rate and cost decrease to the client of 29% - over $2.2M in savings.
Analysis Needed Before Remarketing
Assurance helped improve this company's insurance coverage and bottom line.
A publicly traded light industrial and clerical staffing company approached Assurance to perform an analysis and improve their complete business insurance program. Through a remarketing of their core business insurance lines, Assurance was able to negotiate savings of over 30% in addition to lowering their General Liability deductible and improving overall coverage on their D&O insurance.
The total savings in this area exceeded $275,000 annually.
Comprehensive Insurance Overhaul Reduces Costs
Improved analytics leads to success for this staffing client.
A publicly traded light industrial and clerical staffing company asked Assurance to aid them in improving their analytical analysis of their Workers’ Compensation program, help lower their collateral, and audit their TPA claim handling practices and reserving requirements. Assurance created a 12 month plan to accomplish these tasks. We improved the analytics of the company by creating a database program that calculated monthly risk management ratios, benchmarks, accrual amounts, and financial variances. This program increased their predictability of losses and monthly earnings.
Through a combination of claims handling audits, reserve analysis and independent actuarial reporting, Assurance was able to help lower collateral by over $1.3M per year (a reduction of almost 28%).
Facing Assigned Risk Pool
Structuring an alternative market proposal opened new doors and created a cost savings.
A large contract staffing company for the transportation industry approached Assurance to aid them with their Workers’ Compensation insurance. The client utilized a large worldwide insurance broker for their insurance who were unable to secure Workers’ Compensation insurance at their renewal and forced them to enter assigned risk pools for 20+ states.
Assurance met with the client and was able to structure an acceptable alternative market proposal that saved them over $500,000 from the assigned risk pools and also allowed them greater business flexibility. Assurance also worked with the client to improve safety efforts in the areas of driver training, fleet safety and claims management.
After 1 year, Assurance was able to place the client in a traditional insurance market at over 40% premium savings without upside risk. The client has repeatedly stated that Assurance saved his business.
Staffing Government Contractors Hurting WC and Payroll Tax Expenses
Assurance creatively implemented a limited medical plan to ease unwanted expense inflation.
One of the top 10 largest staffing firms in the U.S. had placed 100 government service contractors on assignment. Due to the Health and Welfare Obligation required by the federal government, the company was required to pay a health and welfare subsidy per employee per hour. This addition to their payroll was driving up the cost of their Workers’ Compensation coverage and their payroll tax spending.
Assurance was able to help the staffing firm take advantage of the Health and Welfare Obligation requirement by implementing a limited medical plan and applying the cost of the subsidy per employee per hour toward this program. This eased the inflation of payroll dollars and brought down the cost of their Workers’ Compensation coverage and spending on payroll taxes.
The net effect of lowering their payroll dollars for government service contractors equates to a savings of approximately of $1,000 per employee per year. With 100 government service contractors on assignment, the company was able to add $100,000 back to their bottom line.
Workers' Compensation Collateral Stunting Growth
Claims advocates and brokers worked together to produce measurable results.
A staffing company with $90 million in sales asked Assurance to assist them in lowering the collateral associated with their Workers’ Compensation program. Our claim advocates and actuaries worked in tandem to create a proper loss forecast for the company for future and historic claims. Our brokers worked methodically with the insurance underwriters and were successful in improving their banking terms and ultimately allowing them to make a profitable acquisition.
Overall, we lowered their collateral requirement by $2.4 million and fixed costs by $3.4 million.
Workers' Compensation Losses Hurting Expenses
Claim's and safety efforts achieve over a $1M cost savings.
Assurance worked with this $100M logistics and light industrial staffing company to create a 3 and 5 year plan to reduce Workers’ Compensation losses and subsequently their overall insurance costs as a function of sales. Through the combination of focused and incremental safety efforts along with diligent claims management, Assurance successfully helped the client achieve its goals.
In 4 years, the client reduced its overall Workers’ Compensation insurance costs from 5.7% of payroll to approximately 2.9% of payroll – over $1.3M in total annual cost savings.