Sarah E. Pacini, vice presidentof risk management and insurance with Advocate Health Care in OakBrook, Ill., says now is actually a good time to buy coverage.

Indeed, Pacini characterizes her most recent renewal experienceas a very “pleasant surprise.”

One key reason why the company is seeing rate reductions thisyear is its substantial self-insured retention.

“We have had a sizable retention since 2002,” Pacini explains.“We actually lowered our retention slightly in 2009—but onlybecause our loss history had been favorable and insurers werewilling to attach at a lower point. It was financially reasonableto do that.”

In addition to the use of substantial self-insured retention,another insurance-buying strategy that works well for Pacini andAdvocate Health Care is starting the renewal process early.

While the details are still being finalized, she says the planis to have the company’s renewals completed beforeThanksgiving.

“We used to start in September. We moved it up to August, andnow we’re starting the application process in July,” she says. “Wefeel that having the flexibility with time is reallyimportant.”

Pacini also stresses the value of long-term businessassociations, which are critical to “those reductions in premiumthat every consumer of insurance wants to see this time of year,”she explains. “We have found that as the companies grow morecomfortable with the risk manager, as well as the risk-managementprogram, we see better results.”

That has been the case this year, she says: “We’ve had somelarger claims that have settled, and we’ve held true to our wordwhen it comes to our claims-management philosophy: quick settlementand settling within our self-insured retention, rather thanconsistently looking to our excess partners to providepayment.”

The excess-insurance coverage, she notes, is only used as a lastresort: “I think that message came through quite clear this year inour underwriting meetings. That has garnered respect with ourunderwriters.”

Pacini notes that a solid relationship with her company’s brokerhas also helped with renewals. “We’ve had strong results with ourbroker for our professional-liability and general-liabilityplacement,” she says. “They are key partners in the entire process,from the application through to the binding—and we’ve enjoyed avery favorable long-term relationship.

“Our insurance partners are open to the policy enhancements thatwe are requesting this year, so we feel it has been a verycollaborative environment at this juncture.”