Top 10 Ways Analytics Reduce Premiums
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Use Data to Lower Your Property and Casualty Insurance
Over the years, I’ve been sharing the correlation between analytics and insurance costs. These analytics really give companies and facilities a sneak peek as to why premiums can be so friggin’ high!
What analytics am I referring to? These analytics can be anything from the day of the week with the highest workers’ compensation claims to the number of employees that engage in your wellness program. Below are my top ten reasons why you should utilize analytics to lower premiums immediately and over time.
- It makes it very easy to assess what specific areas of risk are driving premiums, as well as any indirect costs
- It places a dollar amount on what the loss trends and findings are really costing you
- It measures how much of your reimbursement dollars are being spent vs. saved on insurance expenditures
- It helps you understand how you stack up to other competitors in your wheelhouse
- It gives you goals to reach for and helps you understand what the main drivers of your premium spend are
- You can now invest in effective risk management programs since the ROI can be easily measured
- You can now understand how to tweak certain ways you operate, staff or invest in risk management and claims management initiatives
- You can better understand how and why you’re paying your broker
- You can measure whatever you’d like related to your insurance program: collateral requirements, day of the week with the highest losses, etc.
- You can create projections for insurance and how a new branch will perform with your current program
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