For business owners
Your insurer asked for 25%.Your broker got it down to 13.6%.Should it have been 25% at all?
Most renewals get negotiated. Very few get checked.
7 things you should have heard at your last renewal
Tick the ones you've actually heard. Tap any of them to see what it means.
Whether anyone challenged the assumptions behind your increase, not just the final number.What this means
The insurer comes in at 25%. Your broker gets it to 13.6%. Everyone shakes hands. Your broker tells you they saved you money. But nobody asks whether 25% was ever right, and that's where the real savings are.
What your target loss ratio is, and how it compares to other groups your size.What this means
This is the share of your premium the insurer expects to pay out in claims. The rest covers their costs and profit. There's a normal range for a group your size, and if yours is outside it, you're paying more than you should be.
What you're paying for pooling, and whether large claims were taken out of your numbers.What this means
You pay a charge every month so one big claim doesn't wreck your rates. So if your renewal went up because "someone had a big year," you may have paid for that claim twice.
How much the insurer is holding back for claims that haven't come in yet.What this means
It's called IBNR: claims that have happened but haven't been submitted yet. Every insurer builds in a cushion for them. Some cushions are a lot thicker than they need to be.
What trend the insurer used, and how many months they applied it over.What this means
Trend is the insurer's guess at how much costs will rise. A high number, or one stretched over too long a period, pushes your rate up with no change in your actual claims. It's a guess, and guesses can be questioned.
Whether a drug formulary program could bring down your drug costs.What this means
Drugs are where costs are climbing fastest in most plans. There are ways to manage that through formularies without taking anything away from your people, and most owners have never had them explained.
Which benefits came in under target, and whether those rates went down.What this means
Every benefit is priced on its own. If your dental claims came in low, that rate should have dropped. A single total increase can hide a lot.
If most of these are new to you, that's not on you. Nobody walked you through them.
Send us your last renewal, and within 1 business day we'll send you a free scorecard showing how your plan holds up on all 7.
Your renewal stays confidential and is only used for your review.