How Do Most Insurers Set Rates?

Learn how to Take Control of your Small business costs:  Refuse to accept your benefits the “old” way!

"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

  • Traditional renewal with a 70% TLR plus 10% IBNR for 1st Year creates a net 60% TLR (not unusual for small business)

  • Lets assume a gross annual premium of $10,000 and first year claims of 75%

  • Your potential renewal 35% 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

  • Same Gross Annual Premium and claims of 75%

  • Our renewal would require No increase required due to our competitive Target Loss Ratio of 80% caused by our pooling effect

Our Other Advantages

  • Our list of eligible occupations  is greatly expanded

  • Blue collar groups don’t bother us

  • We can write Associations and Multi-Employer Groups including start-up’s

  • We can quote stand alone main pooled benefits (LTD, WI, Life, CI)

  • We can write  LTD to age 70

  • We use Third Party Administration services to do billings so no insurer controls this aspect but you do!