How will you ensure rates are competitive in the future?
Benchmarking is the cornerstone of the consultative approach we take in providing brokerage services to our clients. We access and provide this from three primary sources: internal, carrier partners and industry publications. Typically we asses all three to determine what is most appropriate for the client. We discuss this in full with the client to assure that the recommendation is in keeping with their risk appetite. We use the following databases to provide comprehensive benchmarking for our clients: Towers Perrin D&O Report RIMS Database Advisen Database Benchmarking is one of the most challenging areas of risk management analysis. For example, the frequency and severity of medical malpractice claims vary dramatically from state to state, and healthcare organizations tend to count claims differently and reserve differently, making frequency and severity comparisons problematical at best. This is all assuming that the data is available. We are finding that larger organizations such as Spring Harbor are benchmarking against themselves. This allows an organization to focus on current and relevant risk and insurance initiatives. Benchmarking works well in other risk management areas, such as cost of insurance per million purchased, captive administration costs, brokerage expenses, limits and retentions analyses, and total cost of risk. Benchmarking also works well in the area of Directors’ and Officers’ and Employment Practices Liability. These lines have less volatility by type of industry and/or state distribution, leading to a larger comparative database. Further, Yates takes the time to get to know your organization and identify areas of concerns. The following are ways in which we utilize your historical information to create an insurance and risk management program that is tailored to the specific needs of Spring Harbor: We review all exposure data related to all lines of coverage We audit historic claims, check accuracy and the impact to underwriting decision making We evaluate liability associated with discontinued operations We benchmark current limit structures against industry and Yates clients We discuss Spring Harbor overall appetite for risk We provide updated comprehensive review of current programs and make appropriate recommendations
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