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...

Read more

Performance Based Insurance focuses on the long term, a comprehensive safety strategy, controlling premiums swings, paying for small losses and insuring for the unlikely severe loss. Many companies will see annual savings of 25% to 50%, while maintaining dramatically improved control over their cash flow and premiums. Simply said,...

Read more
By: tripointins On: July 5, 2016 In: Performance Based Insurance Comments: 0

Modern insurance began in London and exploded globally from Edward Lloyd’s coffee house in 1688. It’s now known as Lloyd’s of London. Ship owners would meet at Lloyd’s and discuss their voyages. They realized the value of their cargo was great enough that it would be catastrophic to lose...

Read more
By: tripointins On: July 1, 2016 In: Performance Based Insurance Comments: 0

Many types of insurance fit within the category of Performance Based Insurance (PBI). Some of the names may be familiar to business executives, while others might come as a surprise: Risk Retention Group Baseball Retro Retention Plan Pure Captive Self-Insured Retention Plan Paid Loss Retro Participating Dividend Plan Safety...

Read more

Performance Based Insurance offers a compelling ROI for many companies, and will transform the insurance landscape in the coming decade. Safety conscious companies will typically reduce their insurance premiums 25% to 50%. The best in class performers can reduce premiums more than 50%. Let’s look at an ROI scenario...

Read more
By: tripointins On: June 13, 2016 In: Performance Based Insurance Comments: 0

Companies using traditional insurance, also referred to a Subsidy Based Insurance (SBI), encounter all of the following problems: Subsidize your unsafe competitors No control of your insurance destiny Subject to unpredictable market swings Insurance company earns the financial rewards Constantly out to bid to keep system honest No underwriting...

Read more

In the past, we’ve discussed some of the major problems caused with Subsidy Based Insurance (traditional insurance). Here is a list of some of the major advantages of Performance Based Insurance: Little or no subsidy to others Control your insurance destiny Eliminate unpredictable premium swings You earn the financial...

Read more
By: tripointins On: June 2, 2016 In: Performance Based Insurance Comments: 0

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....

Read more
By: tripointins On: July 21, 2015 In: Performance Based Insurance Comments: 0