GREENWOOD VILLAGE, COLO. – CCIG has established an analytics unit in a move that is helping businesses realize significant savings on their workers’ compensation premiums.
“We’re saving the typical employer 15 percent to 40 percent on their insurance premiums,” said Bill Young, a statistician who heads CCIG’s Workers’ Compensation Advanced Analytics unit and, with more than 20 years of experience, is one of the nation’s leading authorities on workers’ compensation insurance.
“We’ve hired Bill to help Colorado businesses get the most out of their policies and reduce year-over-year premium costs,” CCIG CEO Brook Mahoney said. “And we did this because we know our investment will make a difference in our clients’ bottom lines.”
Workers’ comp premiums, which are in part driven by claims, can take a healthy bite out of a company’s profit. Safety programs help companies reduce workplace injuries and, as a result, reduce claims. Fewer claims, in turn, help employers achieve a lower “experience modification factor,” or e-mod, which will yield lower premiums.
Savings also can be realized when companies switch to higher deductibles. Higher deductibles lower a company’s e-mod, which, again, result in lower premiums.
Young’s extensive analysis examines several years of data and includes loss prediction analysis. That analysis helps companies project the cost of future losses based on a review of their claims history.
Young then compares renewal e-mods at various deductible levels to extrapolate projected premiums and savings to help businesses determine their best options moving forward.
“Everyone knows safety programs and higher deductibles help control costs,” Young said. “But CCIG’s analytics take cost savings to the next level.”
Employers in Colorado must provide workers’ compensation coverage if they employ one or more full or part-time persons. Colorado is one of the few states in the nation with a “net-deductible” program that sets a company’s e-mod based not just on its loss record, but on loss amounts reduced by the deductibles it pays. That, too, helps keeps e-mods down.
Founded in Greenwood Village, Colo., in 1985, CCIG employs more than 85 commercial and personal lines insurance professionals. It has won repeated recognition as one of the nation’s leading independent insurance brokers, offering commercial property and casualty insurance, as well as risk engineering services and health benefit plans for employers.