Understanding Retro's & Large Deductible Programs
- Understand the concepts of prospectively rated (Guaranteed Cost) and retrospectively rated (Loss-sensitive) insurance plans and how they differ.
- Understand the basics of cash flow and Time Value of Money (TVM), and their significance and use in casualty insurance program designs.
- Know and understand the mechanics and differences between Incurred Loss Retros (ILR), Paid Loss Retros (PLR), and Deductible Plans.
- Know and understand the advantages and disadvantages of each program design to recommend the appropriate design to client/prospects based on their individual needs and treatment of risk.
- Learn brokering strategies and techniques for negotiating loss-sensitive plans with carriers.
Competency focusCasualty insurance technical: emphasis on design, evaluation, and brokering of retrospectively rated plans.
Who Should Enroll?Any Risk Management & Middle Market sales, client advisory, or marketing (placement) person expected to sell, present, service, negotiate, or place loss-sensitive primary casualty insurance plans.
Suggested Prerequisite Profile
- 2-4 years commercial primary casualty brokerage experience.
- Basic knowledge of the nature of claims/loss experience by line of coverage. (Long-tail vs. fast pay, frequency vs. severity, trending and development, etc.)
Length: Eight hours (1 day)