“A lot of loss control, especially in the middle market, is not really focused on improving the quality of security in an organization – the insurance company’s main goal is to get the price right and not to prevent claims,” he said. Kelly McLaughlin, Foresight’s head of insurance. “We take a different approach, because we are passionate about creating safer workplaces where everyone can go home safe at the end of their day. We work to organically change the quality of a business by partnering with our growers and customers to help mitigate and eliminate risk. Leveraging our proprietary Safesite technology and advice, we not only provide insurance, but help businesses become more secure, avoid claims, and ultimately reduce the amount they spend on insurance. Our clients care about their employees, eliminate hazards and reduce their insurance costs. More employees stay safe, employers lower the cost of their insurance, and our growers can demonstrate exceptional value; everyone wins.”
Foresight’s Safesite technology and advice are their primary differentiator, and nearly 10 years of research and development have proven to significantly reduce claims, especially for companies with above-average electronic mods, who in many cases simply don’t know what they need. . to do different. Foresight mobilizes a team of in-house security professionals to work regularly with security managers at the policyholder to track, measure and monitor how things are going over the course of the policy year. Together, they discover the key drivers of losses and what are the opportunities for change. For a landscaping company, the use of technology helped them cut their claims in half during their first year of working with Foresight. This reduction in claims translates into huge savings in the total cost of your insurance program and productivity improvements with more employees able to work. Best of all, the company is now much safer and a better workplace for its employees.
“A 50% reduction is a phenomenal result, but it’s not an outlier,” said McLaughlin, who joined Foresight in April. “We spent nearly a decade building and refining Safesite to the point that we can predict that policyholders who adopt, own and implement the technology – that’s the make-or-break difference – see an average 18% reduction in claim frequency. .”
Since joining, McLaughlin has overseen the collection and translation of third-party data into actionable insights that help the team drive the business through all underwriting phases, from prospecting to pricing. Partnering with top producers to create new opportunities to win business together has fueled significant growth, and now Foresight can identify opportunities in target geographic areas, learn whether a company has a good or bad claims experience, and even assess whether Safesite could help them find to improve. “Our goal is not just to win business, but to focus on specific opportunities where we can bring something unique to the table and help a company improve its security.” Data is also mined to determine how the client’s peer group looks in terms of claims and then illustrate what it costs in terms of money, insurance and lost productivity when they have significantly higher claims than their peers.
“We have taken our approach from idea to execution and are doing so in all markets where Foresight operates; we’re really consolidating now,” McLaughlin said, adding that “while it’s great to see the company succeed, it’s not about us. We are here to help our customers create safer workplaces by partnering with our distribution partners who help us identify those risks where we can make a difference, and together we grow our books organically.”
Everything Foresight does flows into its core tenant of helping all businesses, even those struggling with security, be best-in-class, and McLaughlin has set his sights on specific claims, underwriting and product goals to ensure delivering that goal. . While the best claims are the ones that never happen, and that truth supports the security-first approach that is at the core of Foresight’s business, a major focus for McLaughlin has been optimizing Foresight’s claims handling process. He changed the TPAs to “leverage more data and leverage more predictive models to identify which claims are going to go wrong sooner and employ stronger intervention up front to change the claim trajectory.”
Foresight currently has 25% fewer claims per adjuster than the industry average, which is “the sweet spot for us” as adjusters are able to take the time to properly work on each claim, empowered by the various reporting tools. analysis that Foresight uses. and collaborate with stakeholders to achieve the best outcome: getting people back to work as quickly as possible.
“I’ve spent half my career making claims and often found myself with large claims that started out as minor injuries but just went the wrong way,” McLaughlin said. “They are the ones that make a big difference in the overall profitability of the company, but more importantly, we have the opportunity to ensure that the injured workers we serve get a great outcome.”
McLaughlin has also been building the engine that Foresight underwriters use, fully integrating different pricing technologies to ensure benchmark prices and major risk factors are in line with other top-tier traders, but Foresight has gone a step beyond mod experience and benchmarking models. Recognizing that the best of the best are those who combine the scientific and artistic aspects of underwriting, Foresight’s strategy is simple: employ a team of highly experienced underwriters and empower them to make decisions. For McLaughlin, having great experience on the team stops “knee reactions in terms of changing underwriting appetite or over-responding to a loss on a particular account.”
“I take a more evidence-based approach in underwriting and wonder if it’s a materially different risk than what I understood yesterday, or is it just volatile random noise, and a lot of times it’s just little random noise. We understand, especially with the industries we cover, that from time to time we are going to have a larger loss and it is not indicative of risk quality. We are taking advantage of our Safesite technology and choosing quality risks that are going to have fewer accidents, but not any.”
Since pegging on its first policy in 2020, Foresight has received more than $2 billion in filings and is highly selective about the risks it takes. McLaughlin immediately took steps to fully automate the shipping process, and by delegating data entry and processing to machines, subscribers spend their time figuring out where the company’s approach resonates, resolving issues with customers, and working with producers on opportunities in progress: or in other words, “do the kind of work you want your subscribers to do,” McLaughlin said.
Another critical priority for McLaughlin is Foresight’s continued geographic expansion, driven by extensive market research. In October, product introductions were finalized and Foresight is now open for business in the southeastern part of the country, with Georgia, North Carolina and South Carolina as the next key focus areas. In November, the company announced new capabilities to offer commercial autos in key industry classes when written up with workers’ compensation. Again, it’s the external data that helps illuminate the way forward because the strategy isn’t to name every broker in every market, it’s to find the ones who understand that what Foresight brings to the table makes a significant difference to policyholders. .
“These potential customers can get insurance from any other company, and it will be pretty much the same, but we are a technology-enabled insurance company – we are built differently and have been from the beginning,” McLaughlin said. “If you are interested in security and want to commit to people actually improving the quality of the workplace, Safesite is the right technology for you, and Foresight is the right company to partner with.”