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Article: Partnership can help measure total cost of risk. (risk management)
- Article from:
- Business Insurance
- Article date:
- January 13, 1997
- Author:
CopyrightCOPYRIGHT 1997 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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If you're not looking at the big picture of managing your total cost of risk, you can get lulled into thinking you're getting valuable service from your outside providers, including brokers, insurers and vendors, when in fact the service may have little to do with your strategic or financial needs.
What is total cost of risk?
The world has changed from the days when an organization's total cost of risk was calculated based solely on an analysis of its cost of premiums, losses and broker/service provider fees.
Traditionally, this approach led to recommendations for insurance products. And when the existing insurance products didn't work, more expensive, ...