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In the Mind of Insurance Companies: How they think and how that affect policies and pricingĀ 

4/22/2016

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Insurance Companies are a business. The way they see accounts is very analytical and practical. When they review a new account to provide Workers Compensation coverage for, they consider the following details:
  • One of their top concerns when considering coverage is the employers claim history 
  • The insurance company will review an employers loss history and experience modification rating to determine an account’s acceptability for coverage with their company 
  • Employers with a healthy claim history will typically receive better pricing from an insurance company 
  • Employers poor history will typically receive higher pricing from an insurance company, or be declined from coverage
  • Insurance companies specialize in particular industries, or have limitations on maximum or minimum payrolls, experience medications, or operation exposures, like heights
  • Insurance companies outline their ideal account characteristics to help target accounts that they not only want, but that they can offer the most competitive rates for
  • These characteristics are referred to as a Carrier Appetite
  • The underwriting process helps access if a new account fits into their criteria of the perfect client to meet their appetite
  • The insurance company analyzes if the account has a history of bad credit or payment issues
  • The insurance company looks for profitable accounts. A profitable account is one that pays more premium than is paid by the insurance company on claims. 
  • The insurance company reviews the safety of the account. Claims Prevention programs, Return to Work programs, written safety plans, Workplace safety checks, and Pre-Employment screening helps prove that a business is cautious and safe.
  • The insurance company checks if the account is under the correct Class Codes. Payroll under the wrong Class Codes can dramatically affect the cost of the premium.
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  • HOME
  • ABOUT
    • FOUNDER STORY
    • BLOG
    • CONTACT
  • WORKERS COMP INSURANCE
    • WHO WE INSURE >
      • High-Risk
      • Contractors
      • Health Care
      • Restaurants
      • Professional Services
      • Personal Care
      • Child Care
      • Hospitality
  • APPLY FOR QUOTES ONLINE