The Insurance Power Play

Athletics Australia and Little Athletics Australia

Background

Athletics Australia and Little Athletics Australia, the governing bodies for athletics sports in Australia, were facing increasing insurance costs. The frequent changes in insurers by their incumbent broker over the past few years presented a challenge, portraying the sports as unattractive risks. This perception was at odds with the organisations' own understanding of their risk profile.

Our Services

Resilient was engaged to conduct an insurance program review and benchmarking for both Athletics Australia and Little Athletics Australia. This included managing a significant tender process concerning the services provided by their long-standing incumbent insurance broker.

Strategy and Approach

The strategy hinged on leveraging the combined strength of these two major national sporting organisations to realise economies of scale, while still allowing each organisation to maintain its distinct insurance programs and policies. Key to this approach was understanding and articulating each organisation’s unique risk profile and insurance needs, separate from their collective bargaining power.

Tendering Process and Broker Selection

A substantial tendering process was launched, focusing on the selection of a broker who could cater to the nuanced needs of both organisations. Emphasis was placed on the broker's ability to negotiate favorable terms without compromising the distinct identity and requirements of each organisation. Broker Service Level Agreements, complete with Key Performance Indicators (KPIs), were also developed for each sport, to ensure accountability and service excellence.

Outcome

The engagement with Resilient yielded remarkable results for Athletics Australia and Little Athletics Australia:

Achieved significant annual cost savings of approximately 20% through strategic economies of scale.

Major improvements in coverage for participants across both Athletics Australia and Little Athletics Australia.

Laid groundwork for additional economies of scale, should a future merger into One Athletics Australia occur.

Enhanced services for local associations, state bodies, clubs, and national organisations, improving overall risk management and insurance efficiency.

This case study demonstrates Resilient’s adeptness in balancing collective bargaining with individual organisational needs, leading to considerable cost savings, improved coverage, and enhanced service standards for national sporting bodies.

The Insurance Power Play

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