Monthly Self-Reporting Versus Pay-As-You-Go Billing

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Given the nature of our business, it’s no surprise that when we are talking to workers comp insurance carriers, we regularly discuss pay-as-you-go billing to educate them on the fundamentals of the program and to promote the benefits for insurance companies, their agents and their policyholders. During these conversations, we often hear “we already offer our policyholders the ability to self-report, it’s just like pay-as-you-go.” Hearing this response provides us with an opportunity to educate them on true pay-as-you-go billing. Certainly, for anyone who has invested in and implemented a pay-as-you-go program, they know well that self-reporting is just one component of the overall solution.

A self-reporting platform provides the policyholder the ability to manually submit payroll data on a monthly basis. But questions remain:  What happens after you report your payroll? Does the self-reporting solution calculate premium automatically? Is the next invoice calculated based on the monthly payroll data submitted? Or, is the next invoice based on an estimated premium? What is the benefit to the insured for the manual effort involved in reporting payroll data? Does it help with cash flow? Or, does it reduce the insured's effort in collecting data at time of audit? These are just some of the questions to consider when evaluating offering self-reporting of payroll data versus implementing a pay-as-you-go solution. 

Split Limit Studio’s TRUPAY offers a complete pay-as-you-go solution. The TRUPAY platform is integrated with hundreds of payroll providers (including Intuit QuickBooks) so that payroll data can be automatically loaded into TRUPAY each payroll period (weekly, bi-weekly, semi-monthly or monthly) not just monthly. By having the payroll company report the data, it saves the policyholder time and reduces the chance for human error. TRUPAY also offers the ability to self-report through a user-friendly web interface or by uploading a spreadsheet with payroll data. Once payroll data is reported, TRUPAY provides the insured visibility into their premium amount and how it is calculated. TRUPAY also generates an invoice each pay-period so that the insured can pay their workers comp premium based on actual payroll data instead of on an estimated premium amount. This improves cash flow for the insured while reducing the impact of the annual audit.  Finally, by implementing a complete pay-as-you-go platform, carriers experience the following additional benefits:

1)  Competitive parity with other workers comp writers who offer this capability (the top 5 workers comp carriers all offer a pay-as-you-go solution)

2)  3-5% higher retention rate on average

3) Reduced premium audit costs as a result of having required premium audit data more readily available

Interested in learning more about pay-as-you-go, please reach out to us, we would be pleased to discuss if TRUPAY is a good fit for you!