Renewal Rates & Why Azimuth May Make You Feel Like Sending Flowers
(not his best day)
Many, if not all, of Azimuth's competitors calculate their renewal premiums on a 'class' basis. This means that every insured member receives the same percentage increase (you really didn't think your premium was going to go down did you?) at the time of their policy renewal. So, whether you've had no claims, $100 in claims or $100,000 in claims, you get the same percentage increase at your time of renewal. It's easy, but at the same time it doesn't make a lot of sense does it? At Azimuth, we take a different approach. Nobody outside of an asylum likes renewal rate increases, so our challenge was to find a way to be as fair and sensible as possible. Because it had to be sensible they sent me to get sandwiches when they created it. Because I'm pretty easily bought off, I took no offense. However malleable my reaction to insult may be, please know I'm not cheap. After all, I got a Big Mac. None of this cut-rate value menu stuff for me. Ha! Like they're so smart. I had to go to some other food peddler for weird stuff like Salad Niçoise and Filet Mignon sandwiches. I've never even fished for a Mignon.
|I'm funny to you? |
Funny how? Like a clown?
It's good to know also that Azimuth does not engage in another practice found in the market. Some companies will simply increase rates only upon those who've had large payable claims. Clients get sick or hurt, the claims are paid, but at renewal, the client may be temporarily blinded upon seeing the massive premium increase that has been applied. Okay, so the blindness part may be a rumor, but the renewal price tag can be brutally high. Instead, Azimuth does a high wire act worthy of Nik Wallenda. We are obsessive about keeping premiums affordable for healthy clients while paying eligible expenses for those members who've been unfortunate to incur significant medical bills and have used insurance for its designed purpose. We do our best to avoid crushing rate increases for clients in every category. Many of the clients who purchase the Meridian Series are buying with the idea that he or she will remain insured with us for many years. So if they don't have any claims submitted, it's highly likely their renewal premium increase will be small. Pretty much Muggsy Bogues small. But there will be an increase. This is because our insured members are typically on the plan for a number of years, thus it's pretty likely they will generate health claims at some point. Consider also that cost of medical care continues to creep upward and everyone gets another year older. Statistically every year older and every move into a higher age band increases the risk that medical claims will magically appear. Particularly if you happen to be the Roy part of Siegfried & Roy. The good news is that we don't require our members to play with fully grown tigers.
PS. Insurance is the Brussels sprout of subjects. You know you need to understand it for your own good and I'll work to make it palatable (if it doesn't work, feed me to the dog under the table). So, if you enjoy learning a little more about it in an (occasionally) entertaining way, then someone else might too. Share the love via social media or get on the subscriber list. After all - Don't cost nuttin'