Why Risk Management?
We look at insurance only as a tool for treating risk. Said tool only to be used after the tools of elimination, reduction, avoidance, and non-insurance transfer have been implemented. When insurance, in any form or mode is or becomes the recommended method of risk treatment, since we do not sell insurance or receive any remuneration from the sale of insurance, our recommendation is to the type, kind, limits, etc of insurance to buy, is totally objective at all times.
We have and serve only one master, our customer (client). Unlike an insurance agent or broker, whose income is based or predicated on how much insurance he or she sells, said insurance agent or broker intrinsically must serve two masters, one being his or her client (customer) and the other being his or her supplier (the insurance company). Consequently, consciously or unconsciously, on occasion the agent or broker may find himself or herself compromising one party (client/customer) over the other party (the insurance company), or vice versa. A risk management (insurance) consultant whose earnings are not based or predicated on insurance sales never ever has this problem.
We have and serve only one master, our customer (client). Unlike an insurance agent or broker, whose income is based or predicated on how much insurance he or she sells, said insurance agent or broker intrinsically must serve two masters, one being his or her client (customer) and the other being his or her supplier (the insurance company). Consequently, consciously or unconsciously, on occasion the agent or broker may find himself or herself compromising one party (client/customer) over the other party (the insurance company), or vice versa. A risk management (insurance) consultant whose earnings are not based or predicated on insurance sales never ever has this problem.
Is it time to hire an independent consultant (or rent a Risk Manager)?
- When sending you your policies, does your agent or broker suggest that you (the policyholder) review & check them for accuracy & correctness, instead of them doing that?
- Do your insurance renewals always seem to reflect premium increases (in hard markets), but rarely premium reductions, despite good loss experience and market softness? (This is known as “Premium Plateauing".)
- Do your broker's/agent's responses to your risk management issues always seem to call for purchase of yet more, costly insurance, instead of the use of the other four risk management techniques?
- Are your broker’s renewal proposals usually rendered at the last minute in lieu of by reasonable deadlines?
- Are your policies delivered on a timely basis (i.e., within 30 days of renewal)?
- Are your deductibles inconsistent and “all over the place” instead of being at a consistent, reasonable level over all your exposures to loss, and consistent with your risk corporate tolerance?
- Are your annual premiums over $100,000 annually?
- Are your policy audits carefully checked for accuracy against the rates in your policy (GL, Auto, W.C.)?
- Are your contracts (i.e., leases, service agreements, etc.) reviewed for risk & insurance implications and amendments, prior to your actually signing and executing them?
- Do you give adequate consideration to the single most important factor you should have in mind prior to purchasing any insurance policy?
- Are all your policies reviewed (page by page) at each renewal year insofar as proper coverage of all your exposures, inclusion of all relevant forms/endorsements and compliance with your broker’s/agent’s proposal?
The Three Cornerstones to our Mission:
Knowledge Objectivity Experience
Curriculum Vitae
David J. Mangold, C.P.C.U., A.R.M., I.I.A.
Our Risk Management and Insurance Advisory Services
Depending on our clients' wishes, we have the expertise to supervise, complement, or administer a client's Risk Management program. Hence, essentially becoming the client's "in house" risk and insurance management department.
Risk and/or Insurance Audit Program
In our audit program, our services include the following:
Continuing Advisory Program
Included in this program are all of the features of out Risk and/or Insurance Audit Program and in addition our activities and services address and/or include the following:
Special Assignment and Optional Services
Our expertise is available for specific assignments in the Risk Management field. Those activities can encompass any of the following:
Estimated Cost of Services
Our services generally become cost effective when related to a customer's (client's) insurance costs, when a client's property and casualty insurance budget is the high five or higher figure area.
Questionaire
First of all, no two clients are the same. Depending on the program that a client selects, a fixed or adjustable fee will be quoted predicated entirely on the estimated amount of time spent by the consultant on the client's risk and insurance matters. Whether or not services are invoiced on a time spent (monthly) basis or a fixed fee basis with said fee being invoiced monthly, quarterly, or annually, time records are maintained for each client.
Generally. to present a proposal, we ask or inquire about some or all of the following:
In our audit program, our services include the following:
- Discovery of insurable risk, commonly referred to as "STATIC" risk exposures.
- Measurement and evaluation of discovered risk exposures.
- Risk implications including the impact on the bottom line.
- Methods of risk treatment in use compared to other alternatives available.
- Suggestions for loss reduction and elimination.
- Prior loss analysis and pinpointing areas which should be of concern.
- Insurance coverage review including rating analysis under current insurance market conditions.
- Via either or both a verbal or written report providing specific recommendations for coverage improvement in terms of having the insurance program address both the static risks that have been found to exist as well as modifying terminology to more adequately address the risks discovered.
- Review of any written report in conference with management.
Continuing Advisory Program
Included in this program are all of the features of out Risk and/or Insurance Audit Program and in addition our activities and services address and/or include the following:
- Supervise the implementation of the client's decisions as respects the recommendations contained in the Risk and/or Insurance Audit.
- Provide client with written documentation of changes confirming the implementation of the client's decisions.
- Analyze, check, and verify the correctness of amendments, endorsements, or documents received in response to any requested changes.
- Administration of supplier or service provider insurance certificate maintenance system.
- Administration and management of client's insurance portfolio including but not limited to:
- Negotiating insurance placement with brokers and insurers of the client's choice.
- Continuing insurance analysis of insurance company issued policies, endorsements, and other documents.
- Advice on insurance coverage improvements so that the insurance protection more adequately addresses the client's risks.
- Continuing rate, premium, and invoice analysis resulting in client paying only what is rightfully due.
- Analysis of insurance policy audits including the related debit or credit invoices.
- Where needed, customizing or manuscripting policy wording so that client's insurable exposures are properly addressed.
- Ongoing written reports to management addressing loss reduction, insurable risk exposures, insurance cost, allocation and reduction.
- Advice, commentary, and assistance in safety and loss prevention program.
- Supervise and provide direction in routine claims and loss matters including loss adjustment, settlement, and loss review.
- Loss and claims analysis, loss reserve testing and subrogation surveillance.
- Workers Compensation experience modification calculation analysis and verification, including negotiations for possible revision.
- Physical inspections of client's premises.
- Analyze contracts and legal instruments rendering an opinion on their static risk and insurance implications.
- Research and investigate all facets of the insurance market including insurer integrity review.
- If needed due to insurance market conditions or for other appropriate reasons-
- Draft and prepare insurance specifications for competitive bidding.
- Analyze and evaluate quotations received on writing.
- Award coverage to the successful bidder including reviewing and checking of policies issued as a result of the bidding process.
Special Assignment and Optional Services
Our expertise is available for specific assignments in the Risk Management field. Those activities can encompass any of the following:
- Captive insurer feasibility studies.
- Self-insurance feasibility studies.
- Insurance specification preparation, bid letting, bid analysis, evaluation, and awarding of coverage.
- Analysis of competitive insurance proposals.
- Loss ratio testing including review of insurer reserve practices. Retrospective premium audit reviews.
- Loss/Claim assistance.
- Expert Witness service
- Acquisition/Pre-merger (due diligence) risk analysis.
- Contract wording review for static risk and insurance implications.
- Manuscript terminology (policy customizing).
Estimated Cost of Services
Our services generally become cost effective when related to a customer's (client's) insurance costs, when a client's property and casualty insurance budget is the high five or higher figure area.
Questionaire
First of all, no two clients are the same. Depending on the program that a client selects, a fixed or adjustable fee will be quoted predicated entirely on the estimated amount of time spent by the consultant on the client's risk and insurance matters. Whether or not services are invoiced on a time spent (monthly) basis or a fixed fee basis with said fee being invoiced monthly, quarterly, or annually, time records are maintained for each client.
Generally. to present a proposal, we ask or inquire about some or all of the following:
- Total annual revenue/sales
- Total annual payroll as well as number of employees
- The states in which a firm physically operates
- Overseas operations and sales
- Type of operation
- Number of insurance policies that constitutes a firm's property and casualty insurance program
- The annual insurance budget, exclusive of employee benefits being group life, hospitalization, surgical, disability, etc.
- The number of locations from which a firm operates
- The number of vehicles (power units and trailers) which are in use
- The extent of "on water" and "in space" activities
Company Profile
Our Mission
To discover, measure, and evaluate a firm's insurable risk exposures to loss and subsequently review and recommend methods of risk elimination, avoidance, reduction, and transfer. Further, when and where insurance is the risk "transfer" treatment device, being utilized, recommend and implement the changes or corrections necessary to make sure the purchased insurance policies properly address the insurable exposures at risk.
