Risk Management & Insurance Consulting Services
Employing our services will give you the advantage of: 1) Risk Management Survey and Analysis; 2) Customized Insurance Specifications; 3) Orchestration of a Formal Competitive Process (involving as many brokers and agents as you desire); 4) Negotiation of the Final Program with All Participants; 5) Recommendations as to the Best Program; 6) Our Participation in the Competitive Process
Our participation in the consulting phase is independent from our participation as a broker/agent in the competitive process. The consulting involves a separate fee for services. If we do not present the best program for the benefit of your company, our services will pay for themselves with the broadest available insurance program at the most competitive terms and conditions. In addition, if we are not the most competitive (i.e. another broker/agent win the competition) we are available to be retained for ongoing consulting services which will allow us to monitor the implementation of the program, the quality of servicing from the broker/agent and provide the risk management services that you will not receive elsewhere (this is optional on your part).
Because of the way we work we can provide independent consulting services while at the same time participating, as a broker/agent, in the competitive process.
Our goal when we are employed to orchestrate a program competition is: 1) To effectively eliminate, mitigate or transfer as many of the risks and hazards that your firm is exposed to , through Risk Management techniques. 2) We design and manage the implementation of a broad, cost effective insurance program to provide protection against those risks and hazards that can not be eliminated or completely transferred to others.
The process employs the following steps:a).Obtain initial pre-survey documentation .b) Conduct detailed risk survey of exposures. This is a detailed operation (over 6,000 questions in the survey) and may involve meeting with financial and operations personnel along with the accumulation of substantial statistical and operations data. While it is not the preferred approach, an alternative (less time consuming and less costly) is to have corporate personnel provide much of the documentation following specific written guidelines and then to conduct a less detailed, in person risk survey to supplement and clarify the documentation. c).Analyze the risk management aspect of the survey information to evaluate areas where risks can be eliminated, mitigated or transferred to others. This would include review of leases, contracts, etc. to evaluate indemnification and hold harmless agreements as well as insurance and risk responsibilities. Discuss these areas with management to arrive at a practical risk management approach (much of this may be accomplished during the survey process). d).Design (i.e. customized specification preparation) a pro forma insurance program, that will be sent to brokers for bidding purposes. .e) Analyze loss data that would be part of the specifications and take all appropriate steps to present the loss data to the market place in the most favorable light. This would include employing claims management techniques in evaluating loss reserves and case handling by insurers on third party and statutory (i.e. workers' compensation) claims; evaluating trending factors; evaluating internal loss control and claims management capabilities (part of the survey process); examining catastrophe losses and probability of recurrence etc. .f) Critique current insurance program to see where it falls short of the corporate needs, in accordance with data uncovered during the risk survey process. A separate report to management would be provided on these findings. .g) Preliminary letter to brokers that have been selected to be part of the survey process including a procedural agreement that they have to execute. .h) Present specifications to the competing brokers with detailed instruction letter. This letter covers several areas including instructions for insurance market selection and time tables for status reports and final presentation of proposals. .i) Decide which brokers will approach which insurance markets and inform the brokers accordingly. .j) Monitor the marketing process with periodic status reports from brokers. .k) Receive and analyze the proposals from the brokers. Fine tune the proposals. Make recommendations to management regarding the various proposals and reach an agreement as to final approach in implementation of the most desirable program. .l) Complete negotiations of the selected program(s) and supervise the implementation of coverage including receipt and checking of insurance company executed binders.
This is the ideal approach for the design, marketing and implementation of a broad cost effective program, given the time to implement all steps. For most companies, this entire process could span 3 - 4 months from beginning to end, depending on the availability of internal information. Given optimum conditions and availability of all necessary data, it will take two weeks to do the survey, prepare specifications, contact the brokers for market selections and award markets.
Whether we are the successful bidder or not, on an apples to apples basis, you will have a superior insurance and risk management program and much more competitive prices than you are currently paying.