As part of our analysis and review it is important to consider policy wordings and structures at the time of placement and before any potential loss has arisen. As a result the insured is best placed to maximise the value of the protection provided and apply loss mitigation techniques to areas unprotected.
We have discussed the importance of the legal elements of any broker and insurance programme review with Reed Smith, one of the 15 largest law firms in the World. Reed Smith's Insurance Recovery Group acts only for policyholders and has broad based but specialist experience in analysing insurance wordings and programme structures.
Reed Smith fully understands and supports our role. Where appropriate we are able to introduce them into the review programme or advise as required.
Increasingly we find that clients question the position of those instructed to protect their insurance interests and the extent to which conflicts of interest might affect the manner in which important decisions are taken. Our independence and complete focus on the needs of the policyholder enable us to provide genuinely objective advice on your risk management position and your need for the type of services that an insurance broker might provide.
We were appointed to prepare and manage the tender process - a competitive insurance broker review exercise from start to finish.
The objectives of this process were to:
- Assess the risk strategies of a select number of suitable candidates
- Understand the various risks to which the company was exposed and the alternative methods of minimising their impact
- Agree a balanced programme of risk management and risk transfer
- Achieve a price commitment on the recommended insurance programme and broker fee structure
- Appoint a company to implement the agreed strategy.
Through this unusual method of review, our client was able to:
- Utilise over 100 years experience in the corporate insurance environment
- Ensure management of the exercise was with a qualified party, yet control remained with the client
- Retain focus on the day-to-day business of their company
- Protect management time and exposure, yet provide the fullest volume of information to achieve absolute effectiveness
- Maximise the opportunity of establishing the benefits and opinions of a more substantial number of potential broker partners than they could otherwise realistically consider.
The key benefits for competing brokers were:
- A level playing field
- An equal and realistic chance of success
- Fair flow of information without bias or favour
- Access to key areas and decision-makers in a controlled environment.
The outcome:
- A £3 million pound saving in insurance costs;
- A modern, flexible yet more embracing level of insurance protection;
- A suitable management programme for self-insured risks.
- Full appreciation of all levels of exposure in the immediate and medium term.
The conclusion:
- A perfect solution for the client - with Tonic unequivocally the catalyst.