We can help you to evaluate your existing insurance arrangements and the service delivery of your insurance broker by undertaking an independent insurance review.
Benefits of a review
Undertaking an independent review of your insurance arrangements could result in:
- Reducing the number of uninsured losses caused by a poor match of risk and insurance.
- Cost reductions following a review of the structure of your insurance program.
- Cost reductions through an improvement in the role definition and service delivery of your insurance broker.
- Cost reductions through improved efficiency of internal resources.
- Improved management reporting and quality of risk information to insurers.
When to undertake a review
Your organisation may need an independent review of its insurance arrangements if:
- You are not sure how your insurance arrangements compare to industry benchmarks.
- You do not have the tools to measure which of your risks are insured and which of your risks are uninsured.
- Your insurance program is not integrated with your existing risk management framework.
- You have not undertaken a formal review of the amount of insurance you buy and how much you retain.
- You are looking at buying or selling an entity or division.
Following an independent review of your insurance arrangements, it is our preference to work with our clients and their insurance broker to enhance their existing insurance arrangements and service delivery, rather than facilitate an insurance broker tender.
However, if your insurance broker is not willing or is unable to improve its service delivery we recommend conducting a formal insurance broker tender.
Case Study — ASX Top 100 Company
Situation
- The client believed they had extensive insurance arrangements in place, but following a large underinsured loss wanted an independent insurance review to ensure they had the best possible match between their insurable risks and available insurance cover.
Process and findings
- We reviewed and documented the clients existing insurance processes and procedures at a high level, including the link between how risks were identified, quantified and treated and how the insurance program was procured.
- We reviewed all insurance related activities conducted by the client, those conducted by outsourced service providers and any service agreements that were in place.
- We reviewed the clients financial ability and appetite to retain risk.
- We then compared the clients existing insurance arrangements to benchmarks, industry best practice and provided recommendations for improvement, including an implementation plan.
Client outcome
- The client changed the mix between those activities which were conducted internally and those which were outsourced.
- We facilitated an insurance broking tender, which resulted in a change of insurance broker, cost savings of approximately 40% and a better risk and cover match.
- Contracts have been developed with all outsourced service providers, which include the scope of services, the terms of the contract, the fees that will be paid and measurable financial key performance indicators (KPI’s).
- We were subsequently engaged to manage the transition to the new insurance broker and ongoing monitoring of its performance against the service contract.
- Risk workshops have been conducted to identify, quantify and appropriately treat all insurable risks.