- Insurance program design, placement and management
- Insurance financing solutions
Carving the fat out of insurance costs
Mid-tier surveying firm coming off the crest of significant revenue arising out of the boom CSG and mining sectors were questioning the value of their professional indemnity program. With costs soaring into high 6 figures they needed to make some changes but, didn’t want to lose any of the necessary insurance cover.
Industry supported insurance schemes can generate economies of scale however, they generally take a ‘one size fits all’ approach and very rarely take into account individual business circumstances. Schemes are extremely susceptible to premium volatility due to the isolated performance of the scheme and can lose touch with the broader market. In addition, the scheme cover generally has ‘bells and whistles’ that are often irrelevant to the core operational coverage that a business relies upon.
Allegiant IRS identified an opportunity to tailor a professional indemnity insurance program specifically for the individual needs of our client. Our approach of taking the client’s policy out of the industry scheme allowed us to:
- Strip away non-essential, expensive covers for the client, explaining what each of these elements meant and what they may be sacrificing by not taking them up
- Test the market appetite for the clients individual risk profile and expose their business to new ‘good’ insurers that had previously been unable to quote the client’s business
- Create competitive tension between insurers to leverage a much more cost effective outcome, and
- Negotiate insurer agreement to ‘rate-spread’ the recent income peaks given the heavily reduced workload forecasts.
By assessing, focusing on and leveraging the client’s individual needs we were able to achieve:
- A 128% reduction in annual professional indemnity premium alone, and
- We also provided further premium savings in other areas of the client’s insurance program, while vastly improving policy coverage on public and aviation liability, survey equipment, motor fleet and director’s liability.
The value of Allegiant’s engagement was demonstrated only 3 months after appointment when the client had a claim with their new professional indemnity insurer. Due to the way the claim was managed by the new insurer and Allegiant, the relationship with the client’s customer went from being hostile to being so satisfied by the expediency of the resolution of the claim that it solidified their business relationship with additional work being awarded.