The Redwoods Group’s Business Model, illustrates the thought behind our work:

Market Selection

A key component to the success of the business model of The Redwoods Group is market selection. In order for our unique business proposition to take hold with our potential customers, we need to choose markets that are both underserved and whose decision makers will resonate with our social mission. It is for these reasons that we currently only write YMCAs, JCOs and dentists – three groups that have traditionally been underserved by the insurance industry.

Partner Risk-Bearers

The Redwoods Group must select responsible and conservative fiscal partners to ensure the success of our programs. These partners, in AIG and the associated reinsurers, represent the most financially secure and conservatively run companies in the financial services industry.

Discipline – Selection & Pricing – Risk Management – Claims Handling – Insight

The Redwoods Group is able to experience better than average loss ratios across its programs because of a disciplined approach to selecting and pricing new customers. We are able to select the customers who meet our insightful minimum safety requirements and agree to assess their other potential hazards by following our nuanced and persistent risk management. Lastly, our specialized in-house claims handling team works only within a specific program, so they are able to grow and hone specific skills that pertain to an isolated customer base. Therefore, we are able to respond early with claims managers who are well versed in the specifics of YMCA, JCO or dental claims and are able to respond, insightfully, to serve our greater mission.

Develop high hit and retention ratios

After carefully screening potential customers; our model requires that we develop a very high hit ratio and that we keep the customers we already have. Because we invest a great deal in the customer before we determine that we would like to work with them, we need to “win” more accounts than most insurance providers. Likewise, because we invest a great deal during the relationship through risk management services and continued trainings, we need to “keep” more accounts than most insurance providers. Lastly, with these investments over time, we are able to experience much higher than normal hit and retention rates.

Earn sustainable risk-bearing and operating profit

In order to address fluctuations in market conditions and to provide for the growth of our company, The Redwoods Group needs to earn sustainable profit for both our financial risk-bearers and our own operations. This profit, however, is how we stay in business, not why we stay in business.

SERVE OTHERS

The top of our business model speaks for itself. The top of our business, indeed, our very reason for being, is to “Serve Others.” While most companies declare profits to be their primary motivation and some even place the social mission on the same level as their commercial motives, our sole reason for being The Redwoods Group is to SERVE OTHERS. Service to the community and change effected within it are not byproducts or our business, they are the ends to which our business is simply the means. We do not generate revenues and profits for their own sake, rather, we do this in order that we might further drive capital toward our social mission and all the Good that it entails.