MEDIAN VALUES OF CLIENT ACCOUNTS (followed by the low to high range)
Submission to Bind Ratios
Since 2013 (through 2015) Alternative Risk Marketing has processed more than 5,000 submissions. Unfortunately 60% of the submissions we received do not meet the underwriting criteria we post in our marketing collateral (i.e. All Program(s) require a debit x-mod 125 or greater, $500,000 in wages minimum, high rate governing class code with base rate of $9.50 or greater).
Out of the 2,000 submissions that we moved forward to underwriting, 66% are eligible for a quote; hence we released 1,300 quotes (700 declines).
30% of the quotes issued where at a break even cost savings. Meaning, our inclusive program price was on par with the cost of a standalone policy. We received a handful of bind orders under this scenario. Our broker partners are not yet able to successfully market an Apples to Apples comparison. Hence, they were not able to bind any of the almost 400 break even quotes released.
Approximately 25% of the quotes issued where not presented to the client despite apparent hard dollar savings (5 to 10% savings in an Apples to Oranges comparison). Typical reasons for why 330 lower cost quotes were not presented include:
35% of quotes (460 quotes) were presented and did not result in a bind for the following reasons:
Approximately 10% of the quotes released resulted in a bind for a grand total of 132 net new binds; resulting in over $185,400,000 in payroll revenue, $19,800,000 in workers compensation premiums, and $4,100,800 in administrative fees. Top Reasons for making the decision to come on board with the program include:
Our future to Better Bind Ratio’s
The future of AltRisk is dedicated to educating brokers and providing them with the necessary tools to convert more Apples to Apples opportunities into sales/binds. Our bind ratio’s can exponentially rise if and when our valued retail brokers start to present our solutions rather than hide them…and when they can intelligently present our solution taking all cost factors into account versus presenting on the Apples to Oranges version.
We believe over time and with our awareness training that while we’ll never get to a 100% bind number, that realistically we can double our current 10% and reach a realistic 20% of quotes issued resulting in a bind.