Large Deductible Programs
Large Deductible Programs have collateral requirements. If you have ever asked, “How did you determine the amount of collateral you are requesting? You were likely told, “We use the loss pic”.
The “loss pic” or “loss forecast” is a calculation using the paid and incurred claims values and the basis. The basis can be, payroll, sales, miles driven, and number of units.
Loss picking is not a black hole; it is an art, art we understand very well. If your collateral continues to increase each year and stacking your credit line at the bank is being affected. There is a balance that must be reached with underwriters. There is no way to effectively negotiate with an insurance company if one does not completely understand the calculation.
Busby-Stone Risk Management performs these calculations in-house. You can hire us to work alongside your current insurance broker.
We will use the data you provide to forecast your claims costs including cash flow analysis.