| Transurance Services, LLC |
| Using Transurance to Maximize the Value of Insurance |
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Transurance acts as a third dial on your insurance program. Before it
existed, companies were limited to changing their deductibles or their
limits. With Transurance, companies can supersize the parts of an
insurance program that have the most financial value.
Companies should buy Transurance coverage in the areas of their
insurance programs where they will have the most collateral damages
and where their insurance program has the most financial value. This is
a relatively simple process.
Step #1: Calculate the financial value of the insurance program.
Determine the financial value of insurance by subtracting the cost of
insurance (annual premiums) from the cost of self-insurance, i.e. the cost
of maintaining an equivalent amount of capital to deal with insurable
losses. To perform this step one must know the structure of the existing
insurance program (limits, premiums, layers, etc.) and the company's
marginal cost of capital.
Step #2: Increase the value of the existing insurance program.
This is done by eliminating coverage layers that have little or no financial
value.
Step #3: Add Transurance to the restructured insurance program.
Because Transurance has the same proportional value as the insurance
coverage it indexes, one can maximize the financial value of their
insurance by adding Transurance to coverage layers that have significant
financial value.
Download An Example
In this example, a large manufacturer uses this methodology to restructure
its property insurance coverage. The changes it makes to the insurance
program and the addition of Transurance enable it to increase the
financial value of the combined insurance program by $28.3 million and
the combined insurance limits by $238 million, while reducing their
combined premiums by $1.3 million.
Download A Case Study Using This Methodology
existed, companies were limited to changing their deductibles or their
limits. With Transurance, companies can supersize the parts of an
insurance program that have the most financial value.
Companies should buy Transurance coverage in the areas of their
insurance programs where they will have the most collateral damages
and where their insurance program has the most financial value. This is
a relatively simple process.
Step #1: Calculate the financial value of the insurance program.
Determine the financial value of insurance by subtracting the cost of
insurance (annual premiums) from the cost of self-insurance, i.e. the cost
of maintaining an equivalent amount of capital to deal with insurable
losses. To perform this step one must know the structure of the existing
insurance program (limits, premiums, layers, etc.) and the company's
marginal cost of capital.
Step #2: Increase the value of the existing insurance program.
This is done by eliminating coverage layers that have little or no financial
value.
Step #3: Add Transurance to the restructured insurance program.
Because Transurance has the same proportional value as the insurance
coverage it indexes, one can maximize the financial value of their
insurance by adding Transurance to coverage layers that have significant
financial value.
Download An Example
In this example, a large manufacturer uses this methodology to restructure
its property insurance coverage. The changes it makes to the insurance
program and the addition of Transurance enable it to increase the
financial value of the combined insurance program by $28.3 million and
the combined insurance limits by $238 million, while reducing their
combined premiums by $1.3 million.
Download A Case Study Using This Methodology
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