Client Success Story:
How Strategic Risk Management and Negotiation Helped a Service Company Save Over $100,000 on Health Insurance Renewal
17%
2%
100k+
reduction from the renewal price
cheaper than what the client was originally paying
in savings for company
Background: The client is a company that provides services: heating, cooling, plumbing, & electric. The company needed to renew its insurance plans, but when it came time to renewal, they ran into a big problem. Their original insurance company calculated a 168% loss ratio across the two plans offered. This is where we come in…
Negotiation: We worked to get the renewal down to 15% using two years of medical history, by showing the risk had come off the plan in the previous months. The best market quote came originally at 10% below renewal, but this was just a ‘shadow price’ used to attract the business.
We worked with this quote to demonstrate:
• The risk claims that caused the 168% loss ratio were no longer part of the plan
• The incumbent was working to make up previous loses by charging more
• The company had run well in the previous years without the high-risk claims.
• The client had been with the company for three years, showing loyalty and stability.
• The previous insurance company had an opportunity to keep this business with less risk now without carrying the debt from previous losses.