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Artex is announcing a new workers
compensation program. For lack of a better term we are calling it
"Captive Lite". |
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Administration |
Paper: Zurich
Claims: Gallagher Bassett
Loss Control: Gallagher Bassett
Program Administrator: Artex Risk Solutions
Applications Process: Need ACORD apps and 5 years loss history
valued within 90 days. |
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Structure |
Accounts Size: Over $100,000 in premium
Commission: 5%
Premium Finance Available: Yes
Maximum: 1.05%
Profit Sharing: Up to 10% Calculated 36 months at the end of the
contract period.
Pre Loss Control Required: Yes Cost of $2500 to client |
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Target Classes |
- Temp Staffing
- Warehousing
- Retail Wholesale
- Hospitality
- Trucking (local )
- Manufacturing
- Food Services
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Here's
the Deal |
I know you're looking at this saying "what's
the big deal". A client takes an upswing for 5% to get a possible
10% back??? WRONG!
We know clients won't do that. However, when structuring the
program there needed to be an element of risk in order to get
money back. Our programs are loss rated. Therefore when we accept
an account into the program, we know that the up-front pricing
(INCLUDING the upswing) must be equal to or better than the
guaranteed cost pricing they currently have. That takes the 5%
upswing out of the picture. Our program is more cost effective and
has the additional benefit of the profit sharing. |
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Why is it a Big Deal? |
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An unbundled alternative risk program. This
gives your accounts a way to get a touch of being in a captive
without the up front costs. They can dip a toe in the water. |
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How Does it Help Your Clients? |
To see how this really helps yo need to look
at some figures regarding claims costs.
1 Medical payments for indemnity claims is 30% FROM 2005
2 Prescription claims rose from 3.3% to 5% since 2007
3 Medical bill review fees have more than doubled from 4.7% to
10.7% since 2007
Keeping these figures in mind, our program is unbundled.
Traditionally third party claims administers save clients up to
17% over company adjusters. That's HUGH! Lower claim cost reduce
your clients experience modification. More savings.
Clients will have access to claims information on line. Tracking
and monitoring claims is always in the best interest of the
client. |
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What it Means for You |
- Client loyalty When clients enter a
program like this they traditionally stay longer. Better
retention for you
- A new product to open the doors of
those prospects
- Creative ways to solve programs.
Example: you have an account on a large deductible. Collateral
is difficult to get. Or, the account has lost business so they
are much smaller now. This is a perfect vehicle for them. They
maintain some of the risk reward but without all the
administrative nightmares
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