Risk Financing

     

Used by Many of the Top Fortune 1000 Risk Managers

Easy-to-use-and-understand reference explaining the various funding options for your organization’s risks. Excellent resource for state-specific regulations.

Risk Financing is an easy-to-use-and-understand reference explaining the various risk finance options for any organization's liability and workers compensation risks. It covers all the alternatives with cutting-edge analyses and explanations of traditional insurance rating plans and alternative market options. This includes experience rating, dividend plans, retrospective rating, deductible plans, self-insurance, pooling arrangements, risk retention groups, captive insurance, fronting, reinsurance, and even risk securitization. It is the best online resource available for state-specific regulations.

Risk Financing lays out all the steps necessary to perform a systematic evaluation of risk finance options from loss forecasting to net present value analysis of the alternatives. It includes many useful factors and formulas to help, including loss development factors and claims cost (Masterson) indexes, which are updated annually. Because we keep it current for you, it can eliminate any uncertainty you may feel about which of the many alternative plans is best for your organization or client. It will also provide invaluable insight for fine-tuning any existing program.

Author

steve-birdSteven T. Bird, CPCU 
Principal Consultant
Esses Consulting
 

Risk Financing covers these topics and more!

  • Risk Quantification
  • Basic Loss Forecasting Methods
  • Measuring Loss Development
  • Risk Assessment Using Probability and Statistics
  • Risk Retention
  • Maximum Possible Loss and Probable Maximum Loss
  • Cost of Capital and the Time Value of Money
  • Loss Sensitive Insurance Plans
  • Retrospective Premium Factors
  • The Alternative Market
  • Basics of Reinsurance
  • Tax and Accounting Implications of Risk Financing
  • Plan Evaluation
  • General Liability and Auto Liability Loss Development Factors
  • Workers Compensation Loss Development Factors
  • Includes Newsletter: Risk Finance Perspectives

Download Table of Contents

Agents, Brokers, and Account Support Staff

  • Evaluate and improve the programs currently used by your clients.
  • Equip yourself to point out the disadvantages of self-insurance pools, group captives, and other alternative markets that may not be the best choices for your clients.
  • Keep up with developments in the alternative market, compare plans, and choose the most cost-efficient option for your insureds.
  • Forecast future losses so you can make apples-to-apples comparisons of your insureds' options.
  • Help your clients study the feasibility of self-insurance or a captive.
  • Point out tax and accounting issues with risk finance options that your clients should address with their accountants.
  • Help your clients prepare a request for proposal (RFP) to select the best possible third-party administrator (TPA).

Risk Managers, Financial Executives, and Insurance Buyers

  • Evaluate and improve the programs currently used by your company.
  • Keep up with developments in the alternative market, compare plans, and choose the most cost-efficient option.
  • Forecast future losses with confidence to enable apples-to-apples comparisons of your options.
  • Study the feasibility of self-insurance or a captive.
  • Understand the advice you get from brokers, consultants, accountants, and actuaries.
  • Speak knowledgeably with your accountants about the tax and accounting implications of your alternative risk finance options.
  • Prepare an RFP that will help you select the best possible TPA.

Underwriters

  • Evaluate and advise on improvements to the programs currently used by your clients.
  • Benchmark your internal loss development factors (LDFs) against the annually updated industry LDFs.
  • Employ the Masterson Indexes in your loss forecasting model.
  • Keep up with developments in the alternative market, compare plans, and advise agents/brokers and insureds on the most cost-efficient option.
  • Understand how tax and accounting practices may affect the acceptability of your proposed programs.

Consultants

  • Evaluate and advise on improvements to the programs currently used by your clients.
  • Use the annually updated LDFs and Masterson Indexes in your loss forecasting models.
  • Keep up with developments in the alternative market, compare plans, and advise clients on the most cost-efficient option.
  • Study the feasibility of self-insurance or a captive.
  • Properly consider the tax and accounting implications of the alternative risk finance programs you recommend.

    Purchasing Options

    user

    Online Access: Single User - $317/yr.

    Get 24/7 online access by subscribing to this product in IRMI Online.

    • Any size agency/brokerage
    • Any size insurance company
    • Any size law firm
    • Risk management department
    • Other organization
    • 5% discount with annual payment of $317/yr.
    • Monthly billing is available for $28/mo. Please contact Client Services to set this up.



    Add to Cart Request a Demo

    small business

    Online Access: Small Business - $453/yr.

    Get online access to this product for every person in your small business.

    • Agency/brokerage under $10M in revenue
    • Insurance company under $100M in written premium
    • Law firm under 10 coverage lawyers
    • Risk management departments
    • Other organization
    • 5% discount with annual payment of $453/yr.
    • Monthly billing is available for $39/mo. Please contact Client Services to set this up.


    Add to Cart Request a Demo
    Large Business

    Online Access: Large Business

    Get online access to this product for every person in your large business.

    • Agency/brokerage over $10M in revenue
    • Insurance company over $100M in written premium
    • Law firm with 10+ coverage lawyers
    • Other organization over 100 employees
    • 5% discount with annual payment
    • Monthly billing is also available. Please contact Client Services for pricing.


    Get a Quote Request a Demo

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