|Home| |Background| |Achieved| |Risk Management| |Ambulance| |Finance| |3 Year| |Other|

Case Study

 

FUNDING BENEFIT  –  A CASE STUDY

ABC NHS TRUST

Claims experience during past 3 years (Accidental Damage Fire and Theft Only):-

Year 1

£52,245

Paid and outstanding

Year 2

£39,420

Paid and outstanding

Current Year (Projected)

£46,300

Paid and outstanding

(a)     Current Conventional Premium           £128,314    Fixed

(b)     National Contract Premium                          £130,300

          Amount of Fund included in (b) above         £68,500

 

CALCULATION AT RENEWAL

Accidental Damage Fund

£68,500

Less projected claims costs

£46,300

Surplus to be carried forward

£22,200

(a)     Actual Cost – Conventional                          £128,314    No refund

(b).    Actual Cost – National Contract                   £108,100    Inc. surplus

                 SAVING    (a – b)                        £  20,214


The above example is based on an existing client where Risk Management techniques have been applied.