{"id":305,"date":"2017-10-18T21:18:00","date_gmt":"2017-10-19T04:18:00","guid":{"rendered":"https:\/\/immixgroup.ca\/blog\/?p=305"},"modified":"2022-02-06T21:26:42","modified_gmt":"2022-02-07T05:26:42","slug":"employee-benefits-renewal-is-simpler-than-you-think-heres-the-key","status":"publish","type":"post","link":"https:\/\/immixgroup.ca\/blog\/2017\/10\/18\/employee-benefits-renewal-is-simpler-than-you-think-heres-the-key\/","title":{"rendered":"Employee benefits renewal is simpler than you think \u2013 here\u2019s the key"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"305\" class=\"elementor elementor-305\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-f75b40c elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"f75b40c\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-849c999\" data-id=\"849c999\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-92ddca9 elementor-widget elementor-widget-text-editor\" data-id=\"92ddca9\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"post-info\"><ul><li>By\u00a0<a href=\"https:\/\/www.immixgroup.ca\/benefits-renewal.html#\">Howard Cheung, Account Executive, Immix Group\u00a0<\/a>\/\u00a0Oct 18, 2018<\/li><\/ul><\/div><p>You may be an accountant, or work in human resources. Or perhaps you are a cost controller, chief financial officer or small-business owner. In any of these roles, you face the same daunting challenge every year: At employee-benefits-renewal time, how best to deal with rate adjustments while keeping costs under control?<\/p><p>Renewal reports can be mind-bogglingly complicated. They don&#8217;t have to be. Yes, you have a great deal of data to consider in understanding your group&#8217;s claim usage. But there&#8217;s a key factor that defines your renewal adjustment.<\/p><p>This factor has to do with:<br \/>1.)\u00a0<em>target loss ratio<\/em>, or TLR, and<br \/>2.) two formulas that will help you understand where your renewal should stand.<\/p><p>TLR, sometimes also called a\u00a0<em>break-even ratio<\/em>, is a percentage that indicates the expense level of the insurance carrier. This expense level directly affects how much your group can claim before the insurance carrier loses money.<\/p><p>For example, let&#8217;s assume your TLR is 80%. First we need to calculate the loss ratio, which is claims paid\/premiums paid. In this case, let&#8217;s assume claims paid were $90 and premiums paid were $100:<\/p><ul><li><strong>loss ratio<\/strong>\u00a0= total claims paid\/total premium paid<\/li><li><strong>estimated adjustment<\/strong> = loss ratio\/target loss ratio.<\/li><\/ul><p>This would yield a 90% loss ratio. Then, to find the estimated adjustment, you would divide the loss ratio of 90%\/the TLR of 80%, which would yield +12.5%.<\/p><p>There is a lot more that goes into calculating a renewal, especially when it comes to larger groups. For illustration purposes, we didn&#8217;t take into account a few other factors, such as trend (inflation) and reserves (claims lag). But the above, in a nutshell, is essentially how renewals are calculated. It&#8217;s a quick and easy way for a plan administrator to do the math to see where their group should stand.<\/p><p>\u00a0<\/p><h3><strong>How is the TLR determined?<\/strong><\/h3><p>You might ask: How is the TLR determined? Usually, it&#8217;s determined at the time of inception and illustrated on the initial quote. Included in the TLR calculation are the insurance company&#8217;s costs in handling servicing and claims adjudication, as well as any commission paid to the broker. As the group size grows,\u00a0<em>typically<\/em>\u00a0the TLR will increase and the administration cost will be lower relative to the amount of premium the insurance carrier is receiving.<\/p><p>So, the lower the TLR, the greater the portion of your premium going into expenses and administration and commissions.<\/p><p>You want to ensure that your TLR is updated accordingly and is negotiated to be as high as possible. And you can do this by working with specialized <a href=\"https:\/\/immixgroup.ca\/blog\/index.php\/2021\/10\/29\/top-8-faqs-for-business-owners-when-implementing-an-employee-benefits-plan\/\">employee benefits<\/a> brokers that have preferred pooling arrangements.<\/p><p>If you would like to have an in-depth discussion about understanding your renewals, please feel welcome to contact me with any questions.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-db1e8c1 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"db1e8c1\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-f8070fc\" data-id=\"f8070fc\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-b622eab elementor-widget elementor-widget-global elementor-global-227 elementor-widget-text-editor\" data-id=\"b622eab\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<script src=\"https:\/\/apps.elfsight.com\/p\/platform.js\" defer><\/script>\n<div class=\"elfsight-app-83f14fdc-92b5-4456-9af4-0934ad166639\"><\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-126fe8d elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"126fe8d\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-33 elementor-top-column elementor-element elementor-element-3af3eb3\" data-id=\"3af3eb3\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-e654bd1 elementor-widget elementor-widget-global elementor-global-287 elementor-widget-image\" data-id=\"e654bd1\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"640\" height=\"960\" src=\"https:\/\/immixgroup.ca\/blog\/wp-content\/uploads\/2026\/03\/Howard-683x1024.avif\" class=\"attachment-large size-large wp-image-1986\" alt=\"\" srcset=\"https:\/\/immixgroup.ca\/blog\/wp-content\/uploads\/2026\/03\/Howard-683x1024.avif 683w, https:\/\/immixgroup.ca\/blog\/wp-content\/uploads\/2026\/03\/Howard-200x300.avif 200w, https:\/\/immixgroup.ca\/blog\/wp-content\/uploads\/2026\/03\/Howard-768x1152.avif 768w, https:\/\/immixgroup.ca\/blog\/wp-content\/uploads\/2026\/03\/Howard.avif 1000w\" sizes=\"(max-width: 640px) 100vw, 640px\" title=\"\">\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-66 elementor-top-column elementor-element elementor-element-e3270d9\" data-id=\"e3270d9\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-87ee4a1 elementor-widget elementor-widget-global elementor-global-290 elementor-widget-text-editor\" data-id=\"87ee4a1\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h3><span class=\"cert\"><a href=\"https:\/\/www.linkedin.com\/in\/howardch\/\" target=\"_blank\" rel=\"noopener\">Howard Cheung BBA<\/a><\/span><\/h3>\nEmployee Benefits Consultant, Immix Group: An Employee Benefits Company\n<strong>A<\/strong> <a href=\"https:\/\/www.google.com\/maps\/embed?pb=!1m18!1m12!1m3!1d2602.5699178039927!2d-123.12053598382099!3d49.28454617855886!2m3!1f0!2f0!3f0!3m2!1i1024!2i768!4f13.1!3m3!1m2!1s0x54867181f97930d5%3A0x9797e526e8704198!2s888%20Dunsmuir%20St%20%23450%2C%20Vancouver%2C%20BC%20V6C%203K4!5e0!3m2!1sen!2sca!4v1583124389424!5m2!1sen!2sca\" target=\"new\" rel=\"noopener\">Suite 450 &#8211; 888 Dunsmuir St. Vancouver V6C 3K4<\/a><\/p><p>\n<strong>Ph<\/strong> <a href=\"tel:6046885559\">604-688-5559<\/a><\/p>\n\n<p><strong>E<\/strong> <a href=\"mailto:info@immixgroup.ca\">info@immixgroup.ca<\/a><\/p>\n<p><strong>W<\/strong> <a href=\"https:\/\/www.immixgroup.ca\/\">www.immixgroup.ca<\/a><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>By\u00a0Howard Cheung, Account Executive, Immix Group\u00a0\/\u00a0Oct 18, 2018 You may be an accountant, or work in human resources. Or perhaps you are a cost controller, chief financial officer or small-business owner. In any of these roles, you face the same daunting challenge every year: At employee-benefits-renewal time, how best to deal with rate adjustments while [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":35,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[],"class_list":["post-305","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-emloyee-benefits"],"_links":{"self":[{"href":"https:\/\/immixgroup.ca\/blog\/wp-json\/wp\/v2\/posts\/305","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/immixgroup.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/immixgroup.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/immixgroup.ca\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/immixgroup.ca\/blog\/wp-json\/wp\/v2\/comments?post=305"}],"version-history":[{"count":8,"href":"https:\/\/immixgroup.ca\/blog\/wp-json\/wp\/v2\/posts\/305\/revisions"}],"predecessor-version":[{"id":532,"href":"https:\/\/immixgroup.ca\/blog\/wp-json\/wp\/v2\/posts\/305\/revisions\/532"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/immixgroup.ca\/blog\/wp-json\/wp\/v2\/media\/35"}],"wp:attachment":[{"href":"https:\/\/immixgroup.ca\/blog\/wp-json\/wp\/v2\/media?parent=305"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/immixgroup.ca\/blog\/wp-json\/wp\/v2\/categories?post=305"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/immixgroup.ca\/blog\/wp-json\/wp\/v2\/tags?post=305"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}