The Insurance Power Play

J C Dahlsens

Background

Dahlsens, a leading supplier of building materials operating in areas prone to natural catastrophes, faced significant insurance challenges. With retail centres located in regions susceptible to natural disasters in Northern Australia, and flood-prone areas in New South Wales and Victoria, coupled with several large fire claims, Dahlsens required specialised assistance for their 2019 and 2023 insurance renewals. The goal was to create competitive tension in the market to evaluate their incumbent broker's performance.

Our Services

Resilient was engaged to manage Dahlsens' general insurance tender and provide risk management services for their program renewal. This encompassed a review of their insurance program structure and covers, benchmarking against similar organisations with comparable risk profiles, and assessing the quality and cost-effectiveness of broker services. Additionally, Resilient offered Enterprise Risk Management (ERM) support for Dahlsens' CFO in Board and Audit Risk Committee Reporting, along with expert Environment, Social, Governance Risk and Compliance (ESGRC) advisory services.

Strategy and Approach

The strategy involved a comprehensive assessment of Dahlsens' unique risk exposures due to their location and recent claim history. This was coupled with a market analysis to understand the prevailing conditions, particularly the challenges posed by a tough global property insurance market. The approach was to leverage competitive market forces to ensure Dahlsens received the best possible terms from their insurance providers.

Tendering Process and Broker Selection

A transparent and competitive tendering process was initiated, aiming to foster healthy competition among potential brokers while evaluating the performance of the incumbent broker. The selection criteria were based on the ability to provide comprehensive coverage, expertise in handling high-risk environments, and a proven track record in cost-effective insurance solutions.

Outcome

The engagement with Resilient yielded remarkable results for Dahlsens:

In 2019, amidst a rising insurance market, Dahlsens successfully achieved significant cost savings of approximately 12% and enhanced insurance coverage, all without the need to change their existing broker and insurers.

In 2023, despite facing two major fire claims and a challenging global property insurance market, Dahlsens managed to maintain their insurance costs effectively.

The successful renewals underscored Resilient’s capability to deliver tailored insurance solutions that aligned with Dahlsens’ complex risk profile and business requirements.

This case study highlights Resilient's expertise in navigating complex insurance markets and delivering strategic solutions that yield cost savings and improved coverage, particularly for businesses operating in high-risk environments.

The Insurance Power Play

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