Success Stories

• Cash return of $450K and collateral reduction of $7M negotiated

  An evaluation of a retail client’s historical program revealed that both the cash held by the insurer and the collateral posted for outstanding liabilities were excessive. As a result, Lockton successfully negotiated a cash return of more than $450,000 and a reduction of the workers compensation collateral by more than $7 million.

• Control over claims gives retail client benefits and flexibility

  A large retail client chose to manage their transfer of risk utilizing large deductibles rather than a self-insured retention. We designed their program to give them the flexibility of an SIR with the economics of a deductible. They control their claim reporting and the right to settle. We also obtained approval for their list of chosen defense firms to act as panel counsel for the insurance company. Meanwhile, the carrier pays claims on behalf of the client, thus eliminating the costs and contractual issues associated with a TPA while retaining all the benefits.

• Smart Planning for a Retailer’s Retirement Plan

  A middle market retail client was stuck with a large market retirement plan for its employees. Lockton reviewed the plan and was able to identify a way to save the client about one million dollars. By helping the client find a more appropriate provider, Lockton was able to save the client more than $900,000 in plan fees, with an additional $100,000 savings coming from a plan design change.

• Retailer Achieves Savings Goal Through Renegotiation

  Lockton Benefits was appointed broker for a firm that employees 7,000 people just two and half months prior to their January 2008 renewal date. The employer, one of the nations largest tool and equipment catalog retailers, owns more than 315 stores nationwide. Lockton needed to market, negotiate renewals, provide superior communication for open enrollment in December and save the client 10% of projected costs in 2007. By leveraging Lockton’s position with the incumbent carrier, Lockton renegotiated and restructured the financial agreement with the current carrier. This allowed the company to reach their savings goal on time. The renegotiated agreement earned the retailer a net savings of $900,000 for 2007. The new agreement is in place for 2008, with projections of similar savings.

• Cutting Down on Claims

   A multi-billion dollar retailer insured itself on workers compensation. However, the company paid approximately $17-18 million in claims per year. Lockton advised the company on improving its coverage to decrease its claims costs. Lockton met with the company’s loss control representatives, distributed surveys and added injury counselors. After the first year of the program’s implementation, the company’s incurred costs and number of claims decreased by double-digit percentages.

• Retailer Saves Millions with Claims Cost Control

  In late 2008, the results of a Lockton Claims Cost Control review for a national retailer revealed a heightened need to increase employee awareness and understanding of injury counselors while beefing up the workers compensation program. Lockton’s team met with company representatives to address its needs and research methods of improvement. Lockton’s analysis led to increased communication with injury counselors, higher involvement of nurse managers and more effective return to work tactics. The program revisions lowered the company’s general liability losses from $2.1 million to less than $1.1 million and lowered workers compensation incurred losses from $7.8 million to $5.5 million.