COMPARE MINIMAX SCHEME TO INSURANCE

WHY TO IGNORE LOSS LEADING PREMIUMS

THE DIFFERENCE THE EQUALISER MAKES

THINK NET COSTS NOT UPFRONT COSTS

Commercial Insurance Scenarios

Examples below are based on expected annual repayments to school of £550 per FTE. Purple is the upfront costs. Green is repayments to schools. Red is the real cost (or gain) to you. Compare this with MiniMAX scenarios below to see the difference for an identical risk.

Low Claiming Member

Average Claiming Member

High Claiming Member

MiniMAX Mutual Scenarios

Purple is the upfront costs. Green is repayments to schools. Orange is Equaliser effect. Red is the real cost (or gain) to you. You can see a better result in all cases.

Low Claiming Member

Average Claiming Member

High Claiming Member

How about Loss Leading tactics from Insurers?

If insurers are prepared to lose 20% to get your business then we can compare again....

Low Claiming Member

Average Claiming Member

High Claiming Member

The Result

The outcome is still worse than the MiniMAX loss/gain, and because insurers will have lost money then that will need to be recouped by them in future years as an even higher net average cost. The MiniMAX Mutual consistently provides smaller losses or greater gains no matter what eventually happens.

Convinced? That's great!

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Still Not Convinced?

More real life data

The Difference Equalisation Makes

Example from one of our schemes with just one year of equalisation. See how members with low returns have a minimum of 73% efficiency after equalisation.

After Equalisation


 

In this case, 81 members have received an equalisation benefit from the scheme so that the least efficient is at 73%. The overall efficiency for the scheme is at 90%. If this were to continue for each future year the lowest efficiency would get higher and higher. Without equalisation 81 out of 109 members (74%) would have been worse off, so the majority of members benefit from this process.

WHY UPFRONT CONTRIBUTION CHARGES CAN BE IGNORED

If you think the initial cost is too high it doesn't really matter in an Equalised scheme such as MiniMAX where it's just the fair starting point. See how the end net result is the same because we even everything out.

Contribution Lower

Contribution Higher

 

Because the repayments and the overall efficiency remain the same the higher initial contribution is simply redistributed back to the member to end up at the same position.