This document summarizes an opportunity for insurance agents to access a unique workers' compensation insurance program that can save qualifying risks between 10-25% in premiums. The program targets risks with specific attributes, including high experience modifiers (180-300), risks insured through the state fund or assigned risk pools, and premium sizes between $50,000-$500,000. Agents are advised to target risks in industries like trucking, construction, and manufacturing that meet the criteria. The document outlines the program's benefits, including savings on premiums and out-of-pocket costs for clients. It provides examples of how agents have succeeded in winning business away from incumbents by accessing superior pricing through this alternative program.

1. I want to let you in on a little secret
that most agents are not aware of.

2. I want to tell you about an opportunity
that supports retail agents and helps them from
falling into the… “ME TOO” … predicament
faced by most non-incumbent agents when it
comes to prospecting for new workers’ comp
accounts.
In Just Under 25 Minutes
you will be in the know.

3. This information may help any
hard working,
smart, and
creative broker or insurance agent…
win more
high revenue business while
increasing their closing ratios…

4. Background…
with ADP and Paychex… Kurt Salmon Consulting
… I worked for Allianz Group…PEO Professionals,
Atlas General Insurance… Education wise… MBA, MA etc.
Licensed P&C/Life & Health agent.

5. AND …
When I say higher revenue accounts…
I mean accounts with a median annual workers’
comp premium over $125,000 per year.
(range is $50,000 to over $1,000,000)
Resulting in compensation pay outs averaging
over $12,000 per new client.
(range is $5,000 to over $100,000)

6. IMAGINE
Closing 1 new account per month…
And adding over $150,000 in REVENUE
to your bottom line…
That’s $1,500,000 in workers’ comp
premiums! Not to mention revenue generated
from cross-sell opportunities for General
Liability, Commercial Auto etc.

7. Here is what we recommend…
First, we need to show you how to
redirect marketing activities
in a path with less competition and
with less buying resistance….

8. Second, we need to inform and train you
on a solution that delivers pricing results and
that assists in generating more positive buying
decisions… We help you get to the “yes.”

9. In most situations, the market we represent
is still open.
Enabling YOU … the “hunter”
to have a great shot at winning
new … high revenue … and high commission
accounts.

10. SITUATION:
Let’s face it… clean risks with low to moderate
X-Mods with premiums in the $50,000 to
$500,000 range are highly sought-after
by insurance agents that operate both
within your state on a local or regional basis AND
with savvy out of state “poachers” that
are proficient at making sales “virtually” over
the phone… taking advantage of technology.

11. In fact,
an insured may be working with multiple
agencies, upwards of 4 to 6 in some
situations, seeking to secure quotes from
several insurance carriers in order to
assure access to the lowest rates.

12. PROBLEM:
The chances of winning new business IS
(or at the VERY LEAST) FEELS practically impossible.
We all know that the best chance of
winning is to be the first to meet with the prospect,
and then to blanket the market to reserve
all the possible “viable” carriers…

13. But how often are you the first one
in the account?
Usually the incumbent agent controls
the account and
has first shot at covering most of the
viable comp markets.

14. IMPLICATION:
Most retail agencies boast of a
90% retention
Or BETTER for their current clients.
And industry figures back up this number.

15. Plus …
most agencies have access through a direct
appointment and or via a wholesaler to nearly
ALL the standard markets under the SUN;
placing most brokers in the “Me too” category
previously mentioned…
Leaving them with absolutely no differentiation
from the rest of the pack.

16. What this means is…
YOU have a 10 percent chance
or less …
of securing business away from the
incumbent agent.

17. More specifically, you need ten (10) or more
accounts in “the hopper” each month in order
to make at least (1) sale. And if your not laser
Focused on the types of accounts you target,
That (1) sale may not be enough to put bread
on the table.
That’s a lot of busy work for nothing.

18. What you
NEED:
is a viable market that
most agents are not aware of.
Something truly
unique.

19. Some believe chasing more
opportunities is the key to generating
more revenue.
Research shows there's a smarter way
to achieve better win rates.

20. Sales involves thought and action.
Target the Right
Opportunities
Good salespeople like to innovate,
coming up with great ideas and strategies
for turning those ideas into reality.

21. Has your agency defined Specific criteria of
an acceptable prospect for your company?

22. What you need is a market
that serves an UNDERSERVED and
specific NICHE of risk or account …
That also pays a sizable commission (say over
$12,000 per sale) (range is $5k-$100k per sale)
Thus making it worth your time and effort…

23. AND because of the risk’s unique
attributes …
most agents stay away from
approaching such risks if they are
aware of all the typical warts…
They believe this due to their
inaccurate acceptance that there are
NO viable markets that would write
these types of accounts.

24. AND because incumbent agents who
renew these types accounts… year after
year… believe they have the only viable
market already covered…
they often fall asleep at the wheel leaving
our market wide open to “take” their
account away!
And we shall discuss how you can take
advantage of this environment during this
presentation.

25. PAYOFF:
It’s pretty obvious that if you had
access to a specific market …
that most agents were not aware of …
AND if this market can make good on
its claims that it could save specific
accounts …
with specific attributes 10 to 25% …or
more from their renewal premiums …

26. And at the same time
enable insured's to keep their out
of pocket renewal costs down by as
much as 30 to 60% … helping to
preserve capital and free up cash
flow…

27. …that you might have a pretty good
chance of …
increasing your close ratios …
stacking the odds in your favor …
and generating MORE… and
HIGHER revenue business for both
you and your agency.

28. So by now you might be wondering what the
attributes of an account that we recommend
that you target ARE… Am I right?

29. Agents that adhere to pursuing accounts
with the following attributes to be
revealed… 1) increase their success rate of
placing new business… 2) reduce nonproductive meetings with low percentage
prospects… and 3) enables them to be in a
position to offer the best pricing
advantage possible to win the business.

30. ATTRIBUTE #1
The first attribute is a high X-mod.
That’s right I said a “high X-Mod.”

31. More specifically, an X-Mod between
180 and 300. Our program wants accounts
with premiums… They want “rate” for the
risk.

32. In contrast, a low x-mod account does not
Work as well. Primarily because we do not have
the pricing arbitrage or advantage with lower
X-Mod accounts between 130 and 179 …
There are some exceptions to this rule in
Attribute #2 and 3.

33. ATTRIBUTE #2 When x-mods are 180+
The governing class code… the code with
the most payroll MUST be at least $9.00
per $100 before applying the x-mod and any
other debits or credits.
We are looking for “bill rates” of at least
$12 per $100 at the very minimum … and
Ideally bill rates of $16 per $100 in order
to accelerate our pricing advantage.

34. ATTRIBUTE #2 When x-mods are 130-179
The base rate needs to be $11.00 per $100
for the governing class code…
Or in contrast if the base rate is under $7-8
before applying the x-mod … we need a
really high x-mod in the 200+ range.

35. ATTRIBUTE #3
They are currently insured with, and or
find themselves no other options other
than the costly State Compensation Fund (SCF)
and or one of
the Assigned Risk Pool carriers.

36. If the risk is stuck with these programs
Of last resort … then we can look at risks
with X-Mods as low as 130 because they
Have no options and the filed rates are
usually higher than most markets.
Under these circumstances,
we regain some of our pricing advantage
With lower x-mod accounts (130-179).

37. ATTRIBUTE #4
The account must have proper wage
distribution.
That means that low rate
class codes (codes with base rates from under
$1 up to $5) must not exceed 30 percent
of the gross wages…

38. For example, an account with $1,000,000
in annual gross wages
should NOT HAVE more than $300,000 in wages
assigned to codes such as
clerical and sales codes
that have very low base rates.

39. Lopsided accounts lose their pricing advantage
once low rate wages exceed 30% in most
situations…
Caveat… unless the x-mod is between 200-300.
Then it is possible to recapture our advantage.
Accounts with base rate codes greater than $20
per $100 may also exceed the 30% ratio in some
instances.

40. This means that 70% of the wages SHOULD
BE high rate class codes, and 30% of the
wages can be of the lower rate class codes.

41. ATTRIBUTE #5
Accounts must meet specific wage and
labor attributes…
More specifically, no more than 30% of the
staff may be part-time (including seasonal).
And the median wage of the governing class
code must be close to $26,000 a year per
employee.
Other class codes may be lower. But the
governing class code should be close to
$26,000.

42. The only exception related to the part-time
and seasonal labor attribute is for staffing
companies.
Staffing firms may have a higher rate of
part-time labor. And they may have a lower
rate of pay than prescribed.

43. Caveat: The only exception related to the
$26,000 median wage for employees in the
high rate governing class code is for
trucking risks.
The minimum annual wage for trucking
And transportation is $36,000 per year.

44. ATTRIBUTE #6
The best industries to target are trucking,
transportation, heavy construction, food
manufacturing, landscaping, tree trimming,
janitorial, building operations, recycling,
framing, concrete, HVAC/sheet metal,
pest control, staffing, electrical, furniture movers,
parcel delivery, conduit construction, debris
removal, refuse, and artisan contractors.
* Partial list

45. ATTRIBUTE #7
The basis for success in this program is being
Able to save clients 10-25% and reducing their
out of pocket expense 30 to 60%.
Hence, the seventh attribute we look for
is premium size. An account with a renewal
premium of $50,000 is a good starting point;
however ideal accounts are in the $75,000
to $500,000 range.

46. I will note here that accounts with…
USL&H, emergency services, race tracks
& stables, roofing, armed guards, explosives
manufacturing, and hazardous waste…
Including asbestos and mold remediation…
ARE excluded risks.

47. On a high note we CAN review and
possibly write…
accounts that have been non-renewed,
cancelled, have gaps in coverage, and or
are currently uninsured.

48. So now you know the attributes of the
risks you should target…
High X-Mod (180-300), SCF or Assigned Risk Pool,
High Base Rate, with$50-500k in premiums.
Traditionally… the only way to win such accounts
away from an incumbent agent is to BOR it away
… And that’s not always easy. And it’s not a good
long term marketing strategy.

49. So now let’s review the “practical” market
that writes such risks…
and is more often than not…
able to deliver a meaningful savings and
renewal savings advantage.

50. FACT #1
Depending on the state where the insured
is headquartered, the workers comp coverage
is provided by an AM Best “A” (VIII) and or
AM Best “A-” (VII) Rated carrier.
The program
has over 4,000 covered accounts … providing
protection to over 70,000 work-site employees.
The combined workers comp premiums exceeds
$300,000,000 per year based on over $2B in
reported wages.

51. FACT #2
Aside from meaningful savings… and “A” rated
Workers comp protection delivered on a pay
go basis, the program offers additional benefits
such as: aggressive claims management,
a return to work program, loss control & risk
management support, legal and HR services,
and payroll & tax services. Often times these
benefits help to increase the client savings
beyond the 10 to 25% claims we make.

52. WE GET IT
We understand that most brokers are skeptical
about promoting a program that mandates the
usage of payroll & tax services under an
employer services arrangement. It’s completely
normal and understandable. But don’t let that
be the only reason preventing you from taking
advantage of this opportunity…
because you might be sorry you did.

53. PROGRAM FACTOID
Over the past 24 months the program has
brought on over 600 new accounts in California
and has exceeded $60,000,000 of in force
workers comp premiums in the state.

54. 85% of the business ($51M / 510 accounts)
was brought to the program by NONINCUMBENT AGENTS. What’s silly is, many
brokers in the state who lost accounts where
aware of this very program but decided ON
THEIR OWN AND FOR THEIR CLIENT that this
program would not be viable due to the
requirement for payroll & tax service.

55. And boy where
they wrong!

56. I am not saying that ALL prospects will turn
a blind eye to the component of payroll and
tax… because some will still simply refuse
to choose our program because of it.

57. But more than a majority WILL SAY “YES”
If they meet the primary attributes of a
target account. Business owners seeking a
way to be more competitive, grow their
business, maintain or increase profit
margins, reduce expenditures, etc… WILL
SAY “YES.”

58. Would you agree … if a client is going to say
“Yes” to this program… shouldn’t
they say “YES” to you?
You bet! Of course they should.

59. For example, I spoke with an incumbent
agent that had a nursery risk with some
trucking exposure with an expiring
premium of just over $220,000. The Xmod went down 10 points for the renewal
but it was still high.
The renewal quote was for $330,000 requiring
nearly $50,000 in out of pocket costs at
renewal. The broker assured his client that no
other viable markets came to the table or
where out there…

60. I later found out that the client was in a
frenzy… He personally thought since his xmod went down 10 points that he would
pay less at renewal. He could not believe
that no other options were available.
He was truly … what we call…“distressed.”
He was ready and willing to listen to
viable options should one present itself…

61. I told this broker we could help… and save
the client money. But the broker rejected
my offer based on his perception that the
client would never say “YES” to a program
like this. Because in HIS mind, the client
was in love with his payroll service
provider. So the broker never submitted
the account for us to underwrite and
quote.

62. That was an EPIC mistake!!! A BIG ONE
That cost the agent a client he had for
nearly 10 years … worth over $22,000 in
workers comp revenue per year!!

63. The story does not end there…
3 Days prior to the policy effective date I
received a submission from a different
broker for this very same risk!!!

64. We ended up writing the account for
$110,000 less than the renewal quote.
And the out of pocket renewal cost was
under $10,000 improving the clients cash
flow by over $40,000 at the policy
renewal.

65. More over…
the client was also over joyed to learn
that he was going to be able to terminate
his payroll and tax provider that was also
doing some light HR and legal for him;
thus saving him another $20,000 a year!
He definitely was not IN LOVE with his
payroll provider when he learned of the
additional “wind fall” savings.

66. How do you think the incumbent agent felt?

67. Incumbent Agent

68. How about the “winning” agent???
$20,000 in revenue happier!

69. So what are YOU going
to do now?

70. SUGGESTION:
If you have a risk that meets our criteria
whether you are the incumbent or not, I
suggest that you consider working with
us.
Cover your bases if you’re the incumbent
and increase your chances of success if
your not.

71. Alternative Risk Marketing is 1 of 10
access points to this unique program.
With that said, we are the only access
point that dedicates close to 100% of our
resources supporting ONLY this program.

72. • Set the ground work for this
program in California back in
2009
• Designed the marketing
collateral and pricing
calculator for this program
(proposals)
• Major contributor that helped
define the program over the
past few years to help make it
a success both here in
California and other states…
• Have connections with
underwriting and the
program manager executives.
• Aggressive compensation.
Ronnie & Rob

73. Our Commitment
• Support you through the
entire process
• Provide training resources
throughout our website
so you can become
proficient at marketing
this program
• Fast turn around of rate
quotes (3 to 5 business
days) on complete
submissions.
• Treat you like an adult
• You will never be alone
• Work with you to get the
pricing needed to win the
deal (as long as it makes
sense)

74. Our objective as a training company is to not only
provide products and ideas… we will also be
developing “premium training” and resources …
… that will teach you step by step how to
generate and approach Qualified leads (on your
own) specifically for this program… AND
We are in the process of developing premium
training which includes scripts, and marketing
samples.

75. Marketing Business Agency Leadership Award – Outstanding Performance
Doesn’t it make sense to work with the best?

76. States of Operation
Our office focuses on the following markets: California, Arizona, Illinois,
North Carolina, New Jersey, Virginia, Pennsylvania, and New York

77. Submitting business is simple.
Once you have completed your pre-appointment
form at our website you can start submitting
immediately.

78. WHAT WE NEED TO RESERVE AND QOUTE:
We will need a completed Acord 130 complete
With FEIN, class codes, wages, and most
Importantly… we need employee counts.
We also need a supplemental application. Any will do.
X-Mod Sheet with newly published X-Mod.
We need 3 years of currently valued loss runs
(within 60 days from effective date and
90 days in CA). If years 4 and 5 have good losses
(meaning low losses), send those in too.

79. Please either click the “Get Started”
button above that will take you to our website
so you can complete The pre-appointment form…
or visit us now at www.AltRisk.net to get
started.
Thank you for your time and for joining us!