How to Find Cost Savings with Mod Analysis Tools

Commercial brokers around the country have all had the displeasure of breaking down a mod score with a client. It can be challenging to articulate how their mod score is calculated and how much money they’re leaving on the table every year because of a few correctible mistakes.

At Zywave, we believe that every mod report tells a story. That story has significant value to an agent. With mod analysis technology like ModMaster, agents and brokers can provide their clients with so much more than just a rate.

Show Your Clients How They Can Save Money

In the past, mod scores have been perceived as the method for evaluating a premium for a specific client. We’re not shaking a finger at brokers but… maybe you’ve been looking at mod scores all wrong. Before you stop reading… it’s not really your fault. Breaking down the data that contributes to the concluding mod score has always been a cumbersome and often untenable process for agents and brokers. There’s just too many numbers and not enough time. However, there is incredible value hidden in the formulas behind those scores. 

Every mod report tells a unique story. With a mod analysis tool, you can show your clients how much money they’re leaving on the table and the cost drivers contributing to their mod score. A solution like ModMaster enables you to quickly create a report, provide additional insights into cost drivers, and provide your clients with a data-driven story. It can also allow you to break down a client’s mod score into graphs, charts, and compiled data to make understanding a mod score and its cost drivers simple.

Provide Your Clients with a Path to a Safer Workplace

A breakdown of your mod report can provide your clients with more ways to save money. Companies with high mod scores and premiums often don’t have issues with a lack of equipment, oversight, or the like. They often suffer from a lack of proper processes and safety training. Set yourself apart from your competition by offering your clients mod analysis paired with safety and training content and materials to help them implement the processes that will save them money.

Start Leading with The Mod

ModMaster provides you with a new way to prospect: showing your clients how you can save them money on their premium.

We call this tactic leading with a mod. The great thing about this strategy is that limited information is needed to obtain a mod report. Information like SIC code, estimated manual premium, total losses, expected losses, and a few other pieces of information would provide you with enough data points to run a quick mod.

With those results, prospective clients can see the difference between the current and minimum mod to understand the opportunity for cost savings. But, they can also dive even deeper to understand how their losses impact their current mod.

As a broker, this is a great way for you to showcase your long-term plan to help improve your client’s mod.

Retain More Clients with Mod Analytics

There’s certainly a trend at the moment of companies attempting to reduce budgets and find better ways to spend their money. The pandemic has advanced the adoption of technologies that seek to improve our processes, time management, and the accuracy of our data. Everyone wants to get more out of their money, as they should.

Let’s say you’ve been working with a client for over a year who paid a $50,000 premium for their coverage last year. Your goal would be to reduce their mod score over the next few years. You’d set up quarterly or annual calls to review their progress and offer additional assistance wherever possible.

This adds a whole new element to what you can provide for your clients, one that competitors likely aren’t providing their clients with the same experience.

If you can offer your clients detailed reporting on their mod and can deliver long-term, cost-reduction strategies, your clients will love you for it.

For more information about Zywave’s industry leading mod analysis solution, visit Zywave.com today.

 

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