How does the Performance Based Insurance (PBI) model differ from the Subsidy Based Insurance (traditional insurance) model? The Performance Based Insurance model requires little or no subsidy to the insurance carrier – it works like this. All companies pay a fixed premium that’s used to run an insurance company....

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Very few companies self-insure. Even the largest Fortune 500 companies do not self insure, they have Performance Based Insurance programs which include risk transfer features. Depending on their size, they might pay the first million or even first 100 million of every claim. But they’re still transferring the truly...

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Executives are often surprised when colleagues mention that they have moved to PBI based plans, and that they have dramatically lowered their premiums. PBI is one of the subjects which will be discussed extensively in this blog. Conventional insurance is called “Guaranteed Cost Insurance.” Companies pay a fixed premium...

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PBI offers businesses many advantages. One of the most important is that businesses can control the premium they pay. They no longer face unpredictable premium swings, they don’t need to subsidize the losses of unsafe companies and they no longer have the hassle of going out to bid. Companies...

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The Group Captive is one of the best known types of Performance Based Insurance (PBI). Think of group captive as an insurance company owned and operated by its members. Just like a traditional insurance company, a group captive issues policies, collect premiums and pays for claims, but claims are...

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Let’s begin with some simple definitions. Subsidy-Based Insurance (SBI) is traditional insurance, insurance coverage where the carrier keeps about 35% of your premium and your business is thrown into a pool of other unknown business, often with a mixed if not problematic loss history. Your rate is determined by...

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When employers want to cut their workers’ compensation costs, they work on improving safety programs or training. But have you thought about improving your employee communications? Communications Before the Injury Communicating with employees before a claim occurs may cut workers’ compensation costs. Intracorp, a managed care company, conducted a...

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