Surviving a Hard Insurance Market
… Risk Assumption Assuming more risk can be an effective method for countering a hard insurance market. Modest changes in plan design can effectively reduce your “Net Cost of Risk”. These changes include: Deductible increase Loss sensitive workers compensation programs Group Captives or Single Parent Captives Risk Mitigation Eliminating or mitigating risk is a key component of deductible and loss sensitive program design. You’re given a premium discount for assuming additional risk. If you are able to reduce or eliminate claims, the loss sensitive nature of these programs will result in reducing your “net cost of risk”. A few risk …
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