Case Study
How USI helped a mechanical contractor turn strong safety performance into lower total cost of risk.
Strategies
and Solutions
Positive Financial Impact
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Since joining the captive, the client has received consistent annual dividends tied to its claims performance, lowering its total cost of risk well below what a renewed guaranteed-cost program would have produced. The company’s strengthened loss control program has also helped hold claims frequency below its industry benchmark. USI estimates the shift to a loss-sensitive structure reduced the client's overall risk financing costs by roughly 22% compared to its former guaranteed-cost program.
Background
A mechanical contracting firm with more than 200 employees had spent over a decade on a guaranteed-cost casualty program, paying a fixed premium regardless of claims performance. As commercial auto and general liability costs continued to climb, leadership noticed that their consistently favorable loss history wasn't translating into lower costs, and the guaranteed-cost structure gave the company no way to capture the value of its safety investments.
22%
Reduction in total cost of risk
40%
measurable results
USI helped the client evaluate its loss history and risk tolerance to design a group captive program suited to its safety culture and claims performance.
By conducting a retrospective loss analysis and modeling future loss scenarios, USI prepared a data-driven underwriting submission that reflected the company's claims management discipline. The contracting firm joined a group captive with strong peer alignment, allowing favorable loss experience to translate directly into underwriting dividends rather than being absorbed entirely by the carrier. USI's loss control team also began working directly with the client's safety program to help sustain that performance.
— USI Client
USI has provided us with outstanding customer service. They introduced us to the captive plan we are in, which has resulted in significant dividends being returned to the company. I would highly recommend USI to any contractor looking for high-quality and cost-competitive insurance and bonding services.
of all workdays lost
65%
The facility lacked state-of-the-art surveillance capabilities
#hashtag
USI helped improve security camera use to document fall incidents. New state-of-the-art cameras with artificial intelligence send alerts when the system detects unusual behavior. The cameras also serve as a training tool for workers and a deterrent for fraudulent claims. Additionally, USI helped implement the use of wearable technology equipped with location tracking and fall detection.
The company had an ineffective return-to-work policy in place
#hashtag
USI helped the client initiate a light-duty
return-to-work program to ensure injured employees could come back to work sooner.
An inadequate jobsite layout and improper personal protective equipment resulted in slippery walking surfaces
#hashtag
USI helped formulate an engineering control to divert oil away from travel paths. USI also recommended the use of non-slip floor polish in travel path areas, and non-slip footwear for slippery areas. As a result, the client saw a 55% decrease in slip-and-fall injuries.
The client lacked a tracking method to monitor prevention measures
#hashtag
USI helped the client develop a dashboard tracking system to be updated weekly, including the status of preventive measures to combat conditions that led to falls.
Dashboard
Tracking System
Jobsite Layout Optimization
Improved Policy Implementation
Security System Upgrades
The client used an unsophisticated incident investigation process
#hashtag
USI helped implement a thorough incident investigation process and claims management plan for slip, trip and fall claims. The client saw a 62% reduction in total incurred claims.
Investigation Enhancements
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Want similar results for your business?
“
”
USI's retrospective and forecasting analytics reveal the true cost of risk beyond premium alone.
Solution
Share in underwriting gains and dividends when claims performance is strong, instead of paying a fixed premium regardless of results.
CAT Modeling and Proprietary Analytics
Solution
USI's safety professionals work directly with clients to help sustain the claims performance that drives dividends.
CAT Modeling and Proprietary Analytics
Solution
Consecutive years of captive dividends
3
Potential reduction in risk financing costs
PROPERTY & CASUALTY
Effective Communication is a Must-Have for Benefits Engagement
Source: MetLife 2024 Employee Benefit Trends Study
Employees who are satisfied with their benefits are:
1.6x more likely to be productive
1.5x more likely to be engaged
1.5x more likely to be loyal to their employer
Organizations moving from a guaranteed-cost program to a tailored, loss-sensitive structure can reduce their risk financing costs by up to 40%, according to USI's total cost of risk analysis.
Strengthen Loss Control
CAT Modeling and Proprietary Analytics
Model Total Cost of Risk
Join a Group Captive
Strengthen Loss Control
Model Total Cost of Risk
Join a Group Captive
