Auriga and Aviator Groups

Background

The Auriga and Aviator Groups, key players in aviation and essential services across numerous ports and pilotage areas in Australia and New Zealand, were in the process of an integration program. This merger created a need to consolidate their complex insurance programs, which previously involved five insurance brokers and over 50 insurance policies, to achieve enhanced coverage and cost efficiencies.

Our Services

Resilient was tasked with simplifying the Auriga Group’s intricate insurance landscape. The engagement involved conducting a holistic insurance review, benchmarking the existing program against industry standards, and managing a comprehensive tender process to streamline and improve their insurance arrangements.

Strategy and Approach

The strategy focused on consolidating the insurance programs of both entities to capitalise on potential economies of scale. The approach entailed a detailed analysis of the existing insurance policies, identifying redundancies, and assessing coverage gaps. The objective was to create a more streamlined, cost-effective insurance program without compromising on the level of risk protection.

Tendering Process and Broker Selection

A rigorous tender process was initiated to reduce the number of brokers and policies. The criteria for broker selection were based on their ability to provide comprehensive coverage at competitive prices, their understanding of the aviation sector’s unique risks, and their capability to manage complex, integrated insurance programs.

Outcome

The engagement with Resilient yielded remarkable results for the Auriga and Aviator Groups:

  • Successfully reduced the number of brokers from five to two and consolidated the number of insurance policies from 50 to 16.

  • Achieved substantial coverage improvements and cost savings in excess of 20%, exclusive of administrative cost savings.

  • The reduction in the number of brokers and policies did not necessitate changing two of the five incumbent insurance brokers.

  • The Auriga and Aviator Group are now better positioned to enjoy the benefits of economies of scale and to implement enhanced Enterprise Risk Management practices in their high-risk operational environment.

This case study highlights Resilient’s effectiveness in restructuring and optimising insurance programs following corporate integrations, particularly in specialised sectors like aviation, leading to significant cost savings, improved coverage, and streamlined risk management processes.

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