It costs roughly 35 cents of every premium dollar to run an insurance company. That’s overhead. It pays for underwriters, actuaries, lawyers, claims personnel, marketing staff, etc. That leaves 65 cents to pay the claims for a traditional insurance company. But claim payments aren’t distributed equally to the policyholders....

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A few hundred years ago, when insurance was “invented” in Edward Lloyd’s coffee house (now known as Lloyd’s of London),  ship owners sat over coffee and decided how they would share risk. Essentially, a mini-insurance company was formed for every voyage. Imagine if a ship owner or its captain...

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Middle market companies can learn a lot from the Fortune 500. For example, from our perspective the Fortune 500 separates the world of insurance into two categories: Subsidy Based Insurance (SBI) and Performance Based Insurance (PBI). There is a big difference between these two categories. When it comes to...

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In a Performance Based Insurance Program, many middle market business owners have two fundamental options. They can elect to pay all their own predictable claims, and transfer the more serious claims to an insurance company. Or they can form a small insurance company with like-minded business owners who are...

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If your insurance premium is determined by market rates and other companies performance, you are using Subsidy Based Insurance. In this case, your unused claim dollars are given to underperforming companies which need to cover losses. If your insurance premium is determined by your own experience, and your unused...

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It costs roughly 35 cents of every premium dollar to run an insurance company. That’s overhead. It pays for underwriters, actuaries, lawyers, claims personnel, marketing staff, and so on. That leaves about 65 cents to pay the claims. Another way of looking at this model is to say that...

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Our team can simplify the confusion around captives, high deductible and other Performance Based Insurance programs. Here are some of the terms and concepts involved. With average savings between 25% and 50%, it’s important to consider this type of insurance before your next renewal. All of the Fortune 500...

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Performance Based Insurance™ helps middle market companies gain control over their insurance destiny, saving 25% to 50% on their annual premiums. Conceptually, this is very simple, Insurance companies retain 30% of middle market company premiums for operations and use about 70% of premiums to pay out claims. This is...

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