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SUCCESS STORIES
Pool Client
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Ashton Tiffany analyzed data from one of our public agency clients and determined that bus driving incidents were a leading cause of losses. After researching a number of options, we helped the client implement a bus driving simulator program. The program allows drivers to train in real-world scenarios—but in the forgiving environment of a simulated bus cockpit, with computers replicating the driving experience.
Since the program’s implementation in 2009, bus-related claims and losses have dropped dramatically. From 2003–2008, claims averaged 538 per year, with an incurred loss amount of $2.7 million annually. Since implementation of the program, claims are down to fewer than 300 per year, and losses have fallen to approximately $900,000. The total reduction in losses to date—$3.6 million—more than offsets the roughly $400,000 cost of the simulator.
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Hospital Client
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Ashton Tiffany helped a multistate hospital system create an owner controlled insurance program (OCIP) in
2002. The program provided workers’ compensation and general liability coverage for construction projects with a combined value of $1.2 billion.
In addition to saving our client an estimated $2 million on the purchase of commercial insurance, the OCIP helped the client achieve: (1) fewer uninsured events; (2) greater control over site safety and claims; and (3) opportunities for savings on claims management.
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Story #1
The Employee Health Services Department of an Ashton Tiffany client was dissatisfied with the service being provided by a workers’ compensation third party administrator (TPA). After numerous, unsuccessful attempts were made to encourage more aggressive claims management by the TPA, we recommended that our client puts its claims management services out to bid.
Following an extensive marketing effort led by Ashton Tiffany, the client selected a new TPA. This change reduced the client’s claims administration costs by more than $22,000 in the first year alone. Additionally, the new TPA has provided the vigorous case management that the previous claims administrator failed to deliver.
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Story #2
Ashton Tiffany recommended that a Tucson client consider local legal counsel, rather than Phoenix-based representation, to handle workers’ compensation litigation. This recommendation was based on our belief that: (1) the client’s Phoenix attorneys were sometimes at a disadvantage in the Tucson court system; and (2) Tucson-based representation might be less expensive.
Following Ashton Tiffany’s advice, the client switched to local legal counsel, reducing its hourly legal costs from $275 to $125, and enjoying the advantages of the new firm’s local relationships.
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Regional Transportation Client
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Ashton Tiffany provides outsourced risk management services to a regional transportation agency at a cost of approximately $50,000 annually, based on an hourly billing arrangement. If the client were to provide these services in-house, salary plus benefits could easily exceed $85,000. By outsourcing to Ashton Tiffany, the client: (1) saves money; (2) gains access to the risk management resources of an entire company (rather than a single employee); and (3) can use the flexibility of the hourly billing arrangement to increase or reduce effort as needed.
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Diversified Consumer Services Client
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Our client was paying its insurance broker on a commission basis and was unhappy with the broker’s performance. Ashton Tiffany reviewed the existing broker service agreement and made recommendations for an arrangement more favorable to the client. The new contract reduced our client’s costs from $225,000 in commissions to a fee of $180,000, and also resulted in an improved level of service.
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Hospital Client (Construction)
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An Ashton Tiffany client was poised to spend approximately $4 million on insurance premiums for an owner controlled insurance program (OCIP) that did not thoroughly address the construction risks the client was facing. After reviewing the proposed program, we helped our client secure significant improvements in coverage and program structure. Our client also realized over $200,000 in savings by following our advice to negotiate a fee arrangement with the insurance broker, rather than the full commission arrangement originally proposed.
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