For some real estate owners, large insurance premiums may prompt them to assume a greater percentage of property and liability claim costs in the form of self-insured retentions and large deductibles. While retaining risk is not the only solution for hefty insurance costs, self-insured retentions and large deductibles can be very effective risk management tools if utilized in appropriate situations and implemented and monitored under the watchful eye of a claims management expert. A few of the many claims management tools to help ensure that your retained claims are brought to cost effective settlements and that your total insurance costs are mitigated include: * Hiring qualified third party administrators and training internal staff; * Developing and implementing effective claims management programs including policies and procedures for the reporting of claims; * Preparing tailored claims service specifications intended to optimize the delivery of claims services provided by insurers and third party administrators; * Developing primary medical care relationships with local healthcare facilities; * Conducting claim reserve reviews to ensure that claims reserves are established at reasonable levels, all opportunities for subrogation and third-party recovery are explored, and strategic actions plans are implemented that are geared toward resolving claims in a cost effective manner. Insurance carriers typically allocate thirty cents of every insurance premium dollar to claims handling investigation, defense and payment. Mathematically speaking, retaining a significant portion of the claims risk should afford property owners and managers with ample opportunity to save insurance costs and improve the bottom-line financial performance of their companies. However, the ability to fully realize potential insurance cost savings necessitates that your claims be aggressively and effectively managed in a timely fashion. Lisa Hartman, ARM is a senior consultant at Albert Risk Management Consultants, Needham, Mass.