Risk Management

Enterprise Solutions

  • Introduction
  • Loss Forecasting
  • Net Value Analysis
  • Benchmarking
  • TCIR
  • Coverage Assessment
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Whether you have a full time Risk Manager or you handle your insurance programs internally, J.W. Terrill has the tools and the expertise to assist you in making sound insurance decisions. As your strategic partner, our Enterprise Solutions experts work with you to address your risk management issues from establishing benchmarking of your limits and premiums to understanding the financial implications of selecting a level of retention. Our team of professionals brings years of experience to the table with innovative, out-of-the-box thinking.

To learn more about how we can help your company develop a more effective risk management strategy, please contact a J.W. Terrill representative.

 

Loss Forecaster enables us to:

Analyze up to 15 historical policy periods and project losses for the coming policy period

Complete reserve analyses to meet regulatory and financial reporting criteria

Prepare loss projections to define risk retention levels and policy limits

Determine the effectiveness of a client's loss control program

Make recommendations for company mergers, acquisitions, or divestitures

Generate a detailed report showing each step in the loss forecasting process

Compute the pure loss rate for each of the past policy periods in the analysis

Graphically show the selected estimated ultimate incurred loss for each past policy period

Graphically show the pure loss rate for each past policy period

Create an estimated schedule of loss payments

Compute the net present value of future loss payments

Export analysis data to Microsoft Excel

 

By utilizing our Net Present Value software, J. W. Terrill is able to provide our clients with a quantitative basis for comparing alternate insurance programs. By including the time value of money our clients are able to compare Guaranteed Cost, Large Deductible and a Captive on a level playing field to allow them to make the best decision for their companies.

 

 

Benchmarking is a tool we provide to our clients to help them in evaluating insurance program related questions:

How much limits should we buy?

What retentions do others of our size maintain?

As a percentage of our sales, what are total insurance related costs?

How do our costs compare to others in our industry?

Is our Total Cost of Insurance Risk in line with others?

Benchmarking is a management process in which organizations evaluate various aspects of their
  business in relation to best practices employed by others, usually within their own business sector.

The cost of risk to a firm is often measured in terms of the premiums paid to insurance companies, but property and casualty premiums account for only 20% of a typical firm's total cost of risk. This means that even lowering the rates through aggressive shop-and-bid marketing can only temporarily and minimally impact the total bottom line. Even if an Insured saves as much as 10% by switching carriers or providers every two to three years, this cost-reduction comes from the smallest part of the equation.

By expanding the components of the Total Cost of Insurance Risk a broader, more comprehensive evaluation of the insurance costs can be achieved. TCIR is defined as the sum of the following items:

Risk retention costs

Risk transfer costs

Internal risk management costs

External risk management costs

 

 

Each of our Enterprise Solutions clients is provided an in-depth review of their coverages including identification of potential gaps and areas for improvement. While it is not possible to insure every potential exposure or to identify every possible exposure, with the coverage assessment, our clients have more complete information to make an informed decision about how to management their risk rather than being uninsured.

 

 

 

 

 


Five-Step Approach


 

 


 

J.W. Terrill professionals use a comprehensive five-step approach to develop an enterprise risk management plan that meets the specific needs of your organization.

Simply put, our goal is to help our clients in dealing proactively with the business risks that they face now and in the future. We examine the risks, measure their potential impact, and recommend appropriate strategies to manage or mitigate the risks.