RENEWAL NEGOTIATION

One of our strong suits lies in our analysis of the appropriateness of the premium adjustment requested by the insurance carrier at renewal time. One of our clients, a high tech firm with 45 employees received a renewal on their medical coverage requesting a 15% increase in premium. We investigated the request for what seemed like an unusually high renewal increase. The carrier explained that 15% was the standard increase based on the current trend. The client really could not afford the increase.

We began to research alternatives and approached the carrier with a request to review the original underwriting on this case. This group had originally received a 42% medical rating for existing health conditions at the time the coverage was first underwritten. Those medical conditions no longer existed. By providing the insurance carrier with updated medical information we were able to convince the carrier to remove the original medical rating and revise the renewal. Not only did the carrier lower the renewal adjustment, the premium was reduced $61 per employee. The client renewed the coverage at an annual savings of $32,940.