Background

Cotton On, one of Australia's most expansive global fashion groups, aimed to validate the efficiency of their insurance program. Their objective was to ensure that they were receiving optimal coverage at the most competitive cost from their preferred broker, especially crucial given their extensive operations across Asia, Africa, and North America.

Our Services

Resilient conducted an in-depth review of Cotton On’s global property insurance program. This included comprehensive benchmarking of insurance costs across their international operations and a meticulous evaluation of their loss limits. The aim was to ascertain that Cotton On was neither over-insured, which would result in the unnecessary use of risk capital, nor under-insured, which could lead to exposure to unforeseen financial losses. Additionally, Resilient provided advisory services on Business Interruption losses linked to the Covid-19 pandemic.

Strategy and Approach

The approach was to thoroughly analyze Cotton On’s existing insurance arrangements, benchmarking them against global standards. This analysis covered various aspects of their insurance program, including coverage adequacy, cost-effectiveness, and the appropriateness of deductibles and excesses. The review also focused on ensuring that the insurance program was adequately responsive to the unique challenges posed by the Covid-19 pandemic.

Outcome

The engagement with Resilient yielded remarkable results for Cotton On Group:

  • Despite facing several significant claims due to natural disasters, Cotton On realized substantial annual cost savings of approximately 15%.

  • Achieved worldwide improvements in insurance coverage, along with reductions in deductibles and excesses.

  • These improvements were attained without necessitating a change in their preferred insurance broker, indicating the effectiveness of Resilient’s review and negotiation strategies.

This case study exemplifies Resilient’s expertise in enhancing insurance programs for global retail entities, leading to significant cost efficiencies and improved coverage, while effectively managing the complexities of large-scale, international risk profiles.

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