Global IT Company Finds 31% Savings in Insurance
Industry: Information Technology
Savings Category: Insurance
Our client is a publicly listed Information Technology global company. The client approached Expense Reduction Analysts (ERA) to conduct a corporate governance exercise to satisfy the requirements of the Board Audit and Risk Committee.
The review was not intended to be a cost-cutting procedure; instead, an opportunity to test the market regarding insurance broker expertise and to ensure policy coverage was sufficient for the organisations ever-changing and expanding risk profile.
The client decided that ERA’s unique Conceptual Tender would be the most appropriate model for the client and the process was conducted, including all significant brokers with this sector specialisation.
While the client had stated they were pleased with the incumbent broker, the process unearthed some less than satisfactory findings of the current program, including:
- Hidden commissions and profit sharing
- Over fifty (50) gaps in coverage identified
- Significant coverage exclusions about the organisation’s activities
The preferred intermediary was appointed, with transparency and advocacy ensured through a specifically worded Broker Service Agreement which included Key Performance Indicator Bonuses.
"The policy coverages are now appropriate to the risk profile after a thorough analysis of all policies, risk management procedures and contracts."