How Do Most Insurers Set Rates?
Learn how to Take Control of your Small Business costs:
"The Vicious Circle"
Chasing the lowest rates only creates a price gap that will be corrected.
Traditional Insurer EHC/Dental Target Loss Ratio (TLR) Example
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Traditional renewal with a 70% TLR plus 10% IBNR for 1st Year creates a net 60% TLR (not unusual for small business),
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Let’s assume a gross annual premium of $30,000 and first year claims of 75%,
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Your potential renewal 25% increase required due to Target Loss Ratio of 60% plus any discretionary discount used by the insurer that they will want to get back.
Our EHC/Dental Target Loss Ratio (TLR) Example
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Same Gross Annual Premium and claims of 75%,
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Our renewal would require No increase due to our competitive Target Loss Ratio of 80% caused by our pooling effect.
Our Other Advantages
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Our list of eligible occupations is greatly expanded
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We can write Associations and Multi-Employer Groups including start-up’s
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We can quote stand alone main pooled benefits (LTD, WI, Life, CI)
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We can write LTD to age 70
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We use Third Party Administration services to do billings so no insurer controls this aspect but you do!