The Insurance Power Play

The Prime Financial Group

Background

The Prime Financial Group, grappling with complex professional indemnity and director and officer insurance challenges in a stringent global insurance market, needed a thorough review of its insurance and risk management processes. The financial services industry, especially post-Royal Commissions in Australia, faced a market with limited capacity, appetite for risk, and increasing costs. The Group was using three different insurance brokers, further complicating their insurance landscape with issues such as overlapping coverage and inefficiencies.

Our Services

Resilient was tasked with conducting a comprehensive review of Prime’s insurance and risk management program. This included an in-depth analysis of their coverage, structure, and costs. As part of our services, we managed a competitive tender process and performed a cost benchmarking exercise, aiming to streamline their insurance processes and enhance coverage efficiency.

Strategy and Approach

The strategy involved evaluating the Group’s existing insurance arrangements and identifying areas where economies of scale could be achieved. The goal was to simplify and strengthen their insurance program, ensuring it was both cost-effective and comprehensive, and eliminating any potential gaps or redundancies in coverage.

Tendering Process and Broker Selection

A competitive tender process was implemented to reassess the need for multiple brokers and to identify the most suitable insurance provider for Prime’s specific needs. The focus was on finding a broker who could offer the best terms in the current challenging market while ensuring full coverage without overlaps or gaps.

Outcome

The engagement with Resilient yielded remarkable results for the Prime Financial Group:

Achieved more than 15% in annual cost savings for the Prime Financial Group.

Streamlined their insurance program by reducing the number of brokers from three to one, thereby creating economies of scale.

Eliminated duplicated and overlapping covers, ensuring a more efficient and effective insurance program.

Provided the Executive Team, Audit and Risk Committee, and Board with the assurance of optimal coverage at the most economical cost, with a clear understanding of all elements of their insurance program.

This case study demonstrates Resilient’s ability to navigate complex and challenging insurance markets, delivering tailored solutions that result in significant cost savings, improved efficiencies, and enhanced coverage for clients in the financial services sector.

The Insurance Power Play

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