Benchmarking: How Your Insurance Rates Stack Up
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Benchmarking is an important part of due diligence when exploring your options with an insurance program. Why? It will determine how you line up with other real estate companies in comparison. Items to take into consideration when benchmarking are:
- Building construction type
- Fire protection and safeguards
- Loss ratio
- Occupancy of buildings
- Risk transference
These items will allow you to see how you stand next to your peers. We can compare the makeup of your company’s portfolio with ones similar to you. Ultimately, this will show you if your premiums are in line.
Many of the factors that go into this are items underwriters take into account when evaluating your risk. If you find yourself priced higher than your peers, an insurance broker can help address those concerns through safety and loss control. At Assurance, we work with clients to ensure loss ratios are in line, and that we’re implementing proper risk transference programs. At the end of the day, your pricing can be directly related to the frequency or severity of claims within your portfolio.
Managing those claims can directly impact the bottom line on your insurance costs. It’s important to take benchmarking into consideration when partnering with a broker. For a comprehensive review and benchmarking analysis, contact the Assurance ‘A’ Team.
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