Video Summary
Roger Thorpe, President of Thorpe Benefits, and Allison Brown discuss Question 8 of their series on creating a successful benefit plan. They focus on understanding the factors that impact renewal rates. Allison explains various elements affecting rates, including expense margins, target loss ratios, inflation factors, reserves, pooling fees, claims experience, and commission. Roger emphasizes the importance of understanding these factors to calculate rates independently and negotiate effectively. They briefly mention self-insured models as an alternative for some clients. The discussion aims to empower clients with knowledge to make informed decisions about their benefit plans.
Chapters
Introduction to Question 8 on benefit plan factors
Roger Thorpe introduces the topic of Question 8, which focuses on understanding the factors that impact benefit plan renewals and rates. Allison Brown joins him for this discussion.
Factors affecting benefit plan rates
Allison Brown explains various factors that influence benefit plan rates, including expense margins, target loss ratios, inflation factors, reserves, pooling fees, and claims experience. She emphasizes the importance of understanding these elements when choosing a carrier and during renewals.
Importance of understanding commission in rates
Allison Brown highlights the significance of knowing the commission built into rates, as it affects the overall outcome of renewal rates and target loss ratios. Roger Thorpe expresses surprise at how often this information is not disclosed to clients.
Empowering clients with knowledge
Roger Thorpe discusses how understanding these factors allows clients to calculate rates independently, rather than relying solely on broker negotiations. This knowledge provides transparency and confidence in decision-making beyond just price considerations.
Brief mention of self-insured models
Roger Thorpe briefly mentions self-insured models as an alternative for clients who want to minimize certain factors. Allison Brown adds that timing is crucial when considering this option.