An independent audit or evaluation of your risk management program provides you with an objective assessment on how your organization has identified and implemented techniques to treat insurable loss exposures. These evaluations are always tailored to the needs of each specific client. Typical audits/evaluations focus on analysis of retention levels, scope of insurance protection, effectiveness of risk transfer techniques, broker/insurer service evaluation, and analysis of the internal risk management function. Insurance audits/evaluations are more limited in scope and focus almost solely on the extent of insurance protection.
After a risk management or insurance audit/evaluation, many clients retain us to monitor or manage their insurance program to be sure it continues to meet the needs identified by the risk audit/evaluation. Continuing management of an insurance program includes monitoring of pricing as well as coverage terms and conditions in relation to industry trends. As part of the management function, and if deemed necessary, the insurance program, at our client's direction, may be subjected to a competitive re-marketing in an effort to gain cost effective pricing and coverage improvements.
Assistance with a competitive marketing project, or a less formal request for proposals, can include some or all of the following: insurance program design, preparation of detailed specifications, collection of rating and background information, agent/broker interviews and selection, insurance market allocation, review and analysis of bids, preparation of a report summarizing the results and providing placement recommendations, review of binders and review of the ultimately issued insurance policies.
Risk Management is much more than the purchase of insurance. We are regularly called upon to evaluate alternative risk financing techniques available to treat loss exposures including self-insurance, captive insurance companies, risk retention groups, and retrospective rating or deductible plans.
Evaluating these alternatives and the various options with respect to each through feasibility studies requires objectivity and experience, two defining characteristics of Aldrich & Cox, Inc. Some of these alternatives, if appropriate, can help organizations break the traditional, commercial insurance market dependence and its continuing market cycles that are so often difficult to predict or manage.
Some of these alternatives may enable your organization to enjoy many of the advantages of self-insurance with a fraction of the risk associated with that option.
If a form of self-insurance is appropriate, many services traditionally performed by insurers will have to be sought from alternate sources or from insurers on an unbundled basis. Evaluating the quality and level of those services is a vital component of the implementation process. Ongoing oversight of these services is also important to ensure the success of the program.
A&C Consulting Staff Members are available as a resource to attorneys seeking expertise and advice in virtually all areas of insurance and risk management. By providing support and technical assistance, we bring value to the legal team.
Whether claims are adjusted and processed by Third Party Administrators (TPAs) or insurers, their services are vital to the success of loss sensitive programs. By conducting claim audits, we can evaluate the level of service a TPA or an insurer is providing. Mishandled claims or inappropriate reserves can cost organizations thousands of dollars. Our job is to make sure they are doing their job effectively and, where appropriate, keeping reserves to a minimum.
Employee Benefit Plan budgets have skyrocketed and employers as well as employees are continually looking for ways to control costs. Redesigning Employee Benefit Plans may improve their cost effectiveness and help your benefit package remain competitive with other employers in your area.
Competitive Marketing Projects and Alternative Risk Financing Studies are conducted in connection with Employee Benefit programs, as well. In addition, TPA Service Evaluations and Claim Audits are conducted to assure that self-insured programs are being operated in a cost effective manner.
Workers' Compensation exposures for many organizations represent one of the most volatile areas in their risk management program. While for some, this volatility may result from actual, catastrophic loss exposures, for many, this volatility arises from the costs associated with insuring this exposure.
Workers' Compensation benefit levels and premium rates have been the subject of frequent reform acts in many states, all aimed at reducing the cost of this insurance to employers. Employers are also now realizing that some cost cutting steps can be taken on their own and this is another area where our services can be of assistance.
Putting a Workers' Compensation program under the microscope will reveal many ways where cost savings potential exists. We evaluate the type of insurance rating plans that are available to clients based upon their premium volume and loss history and recommend the plan that best meets their needs in terms of risk aversion and cash flow.
We assist clients that purchase Workers' Compensation insurance by reviewing experience rating calculations, confirming the correct use of classifications, verifying the accuracy of premium audits, reviewing retrospective rating adjustments or dividend calculations, analyzing claim reserves, conducting claim file reviews, assisting with claim adjustments.
Clients large enough to consider self-insuring the risk of loss are assisted from the feasibility study phase, through the implementation stage and with the monitoring of the self-insured program to ensure its continued success and cost effectiveness.
The use of appropriate loss control techniques (both pre-loss and post-loss efforts) can be critical to the success of any Workers' Compensation program and we are frequently called upon to evaluate the effectiveness of such techniques.
Understanding the Workers' Compensation plans available and what impacts the cost of each plan is vital. We can help you take control of your Workers' Compensation program.
Companies not large enough to support a full-time risk management department, but that have complicated risks that exceed the time availability or expertise of their internal staff often outsource that function. Acting as the part-time risk management department, we have cost-effectively managed that function for many organizations and have brought more expertise to the organizations than could be achieved by internalizing the function.
Continuing consulting arrangements also consist of retainer-type relationships whereby we are available to handle special projects when needed or recurring projects such as renewal negotiations, etc.
FOR MORE INFORMATION, CONTACT ALDRICH & COX, INC.