Before becoming our client, a retail firm's workers compensation premiums would have totaled $2.4 million every year if it hadn't had a $250,000 deductible per claim.  Regardless of the fact that they'd never had a claim exceed this deductible, their workers compensation premiums were still over $900,000 every year.  Our Total Cost of Risk analysis showed that their in-house safety and claims staff had been successful in reducing claim frequency year after year, but workers compensation premiums had continued to rise.  Further, we found that the insurance company's fees for claims handling were double what others were charging.

We issued an RFP on behalf of our client to find an actuarial firm that was experienced in workers compensation and that had access to industry data to supplement our client's claims history.  Our client selected an well respected firm whose fees were very competitive, saving money by going through the proposal process.  We defined the actuarial study parameters to project losses under deductibles ranging from $25,000 to $1 million.  Using the study results, we identified the optimal layers to insure in the captive insurance company.

Armed with information, analyses, and a marketing strategy, we assisted the client's insurance broker in negotiating excellent rates and terms with a new workers compensation insurer, cutting the client's premiums and claims fee drastically.  We also worked closely with the client's financial advisors to structure the captive's ownership and contracts so that the captive would best achieve the owner's financial goals.  Meanwhile, we licensed the captive insurance company within the client's desired timeframes.

Once the main mission was accomplished, our client didn't head for the checkout line. Instead, we continue to help them shop for other risks to insure in the captive while keeping a close eye on their workers compensation costs.