Insurance Feasibility Studies
The most effective way to ensure the insurance program for your company is fit for purpose.
Insurance feasibility studies are undertaken to evaluate whether a company’s specific insurance structure, strategy, or alternative risk solution is fit for purpose, cost-effective, and sustainable for their needs.
Our Approach
Our WorkRisk IQ consultants employ these studies for our clients to analyse their risk profile, loss history, financial position, operational exposure, regulatory requirements, and future business plans in order to determine the most appropriate insurance approach for their particular circumstances and needs.
Our feasibility studies are commonly used to assess:
- Workers compensation strategy options
- Alternative insurance arrangements such as burning cost, retro-paid loss or Loss Prevention Recovery options
- Self-insurance eligibility
- Consolidation or restructuring of insurance programs
- Opportunities for premium optimisation or cost reduction
When to call us
An Insurance Feasibility Study is one of the most effective ways for a company to ensure their workers compensation insurance program is cost efficient, compliant, and aligned with their strategic goals.
Organisations typically undertaken a feasibility study when:
- Insurance costs are too high.
- The size and scale of the organisation has changed through organic growth or acquisition.
- Management is not certain about the various options available to it and the financial implications of these options.
- The organisation has invested in safety and has maturity in risk management.
The Benefits
The net effect of a study are many tangible benefits that may include:
A Clear Understanding of Current Costs
We break down the drivers of your company’s insurance premiums, any claims leakage, and any inefficiencies in your current program.
Identifying Savings Opportunities
By modelling multiple insurance options, most clients discover previously unseen savings like potential premium reductions, lower claim and administrative costs, and more cost-efficient risk financing strategies.
Evidence-Based Decision Making
Backed by hard data, accurate projections, bespoke risk analysis, and regulatory insights, our studies eliminate guesswork and enable clients to make informed choices.
Improved Compliance and Reduced Regulatory Risk
We identify any gaps in current compliance, and requirements for more advanced arrangements (like self-insurance). Ensuring clients avoid penalties, audits, or governance shortcomings.
Strengthened Claims & Injury Management Strategy
By uncovering systemic causes of high claims, opportunities to improve Return-to-Work (RTW) outcomes, and any injury prevention gaps, our studies can lead to reduced claims’ duration, cost and frequency.
Support for Long-Term Planning
We provide a 3–5 year outlook so you can plan your budget forecasts, insurance strategy transitions, and investments in safety or claims capability. Resulting in generally lower risk profiles.
Validation for Self-Insurance or Captives
For larger organisations, we determine whether options such as self-insurance or alternative premium options could deliver substantial cost control and stability.
Enhanced Negotiating Position with Insurers
We arm you with far better detailed analytics, giving you stronger leverage during premium negotiations, better terms and conditions, and more tailored coverage.
Reduced Business Risk
By highlighting exposures that may not be adequately insured or managed, we help protect you from unexpected costs, underinsurance, high-severity claims, and any program instability.
Our Experience
WorkRisk IQ has extensive experience in working with clients in all sectors to undertake feasibility studies to clearly articulate the financial implications of the various programs available. This includes specifically:
- Burning cost, retro-paid loss or Loss Prevention Recovery options;
- Self insurance in the state based and Comcare schemes.
These studies have enabled our clients to develop strategic plans to implement optimal insurance program design. We have partnered with organisations entering burning cost type arrangements, self-insurance, organisations acquiring and divesting and the implications to insurance arrangements resulting from these changes.
Our assessments provide concise summaries that senior management teams can utilise to make sound business decisions.