When insurance carriers price your policy, they use averages. Industry averages. Regional averages. Company-size averages. But here’s the problem: you’re not average—and being lumped into a general risk pool often means you pay more than you should.
That’s where the concept of “de-averaging” your business comes in. It’s a strategy we use to help clients stand out to underwriters, secure preferred pricing, and control the insurance narrative before the carrier does.
What Does “De-Averaging” Mean?
De-averaging is the process of showing underwriters why your business is safer, smarter, and more proactive than the typical company in your class code or industry.
Instead of being rated based on what “most businesses like yours” experience, you’re rated based on what you’ve done to reduce risk and improve performance.
Why Most Businesses Get Penalized by Averages
Insurance underwriters work with limited data:
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Basic NAICS or SIC codes
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Loss history
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Payroll and revenue numbers
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Public safety records or Mod scores
If you don’t provide a fuller picture, the underwriter fills in the blanks with assumptions—usually not in your favor.
How to De-Average Your Business
Here’s how we help clients elevate their risk profile:
1. Tell a Better Risk Story
Don’t just let your Mod score or loss runs speak for you. Share:
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Your current safety initiatives
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Leadership commitment to risk reduction
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Compliance metrics and near-miss tracking
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Improvements made since your last renewal
2. Document Your Safety Culture
We help you create an underwriter-facing safety packet that includes:
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Training schedules
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Written safety programs
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Incident response protocols
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Return-to-work strategy
3. Pre-Review Your Loss Runs
Underwriters love clean data. We scrub your loss runs for:
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Inaccurate reserve amounts
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Claims that should be closed
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Trends that require explanation (and your fixes)
4. Highlight Subcontractor Controls
Many contractors pay higher premiums because they can’t prove subcontractor compliance. We fix that with:
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COI tracking systems
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Subcontractor agreement templates
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Project risk transfer protocols
5. Use Predictive Risk Modeling
We project your Mod score, auto trends, or general liability exposures over 1–3 years and show underwriters how your trajectory is improving.
Real-World Example
A mid-size commercial builder has a clean loss history but a 1.18 Mod due to an outdated reserve on a shoulder injury.
What Underwriters Want to See
When evaluating risk beyond the average, underwriters look for:
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A narrative of improvement
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Proactive leadership
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Documentation of systems and controls
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Transparency and responsiveness during the quoting process
We make sure you check every box and then some.
Ready to Stand Out and Save?
Let’s put your best foot forward. We’ll help you craft a risk profile that speaks your value—and helps you break free from average pricing.
📄 Request a De-Averaging Consultation
🧾 Request a Copy of Our Risk Profile Checklist
If you’ve worked to make your business safer, we’ll make sure the insurance market knows it.
