Background

The Lion Partnership’s senior partners in Australia were approached by a group of 8 Victorian Local Government Councils that required the services of an independent expert as part of an internal corporate governance review.

Given budgetary constraints and financial pressures resulting from reduced federal funding and rate-capping, the Councils were all eager to save money. However, they also wanted to explore the adequacy and effectiveness of their existing insurance arrangements and test their long-standing relationships with their incumbent intermediary.

The challenges faced by Councils are somewhat diverse and evolving. Their position within the government hierarchy and responsibilities to the general public mean they are susceptible to numerous high-frequency losses that can accumulate considerable costs over an extended period of time.

From an insurance perspective, one advantage of their position is their universal coverage requirements, given their exposures and subsequent risk transfer needs being virtually identical for the most part.

Approach

Accordingly, to assist the Council members to maximise their potential for cost savings, The Lion Partnership’s approach was to manage a 'Request for Proposal' (RFP) insurance tender exercise on behalf of the Council's on a group or collective basis. This meant that the Council tenders were advertised in the market simultaneously as a 'group' tender opportunity, which enabled the Councils involved to aggregate their insurance buying power from a marketing standpoint while still maintaining their programs.

This concept was reiterated to participating brokers who supported the approach as it also afforded them the opportunity, if appointed, to approach prospective insurers with a far larger potential premium pool.

Solution

As anticipated, this greatly enhanced the competitive tension among the respective brokers tendering for Councils' business, which helped to generate better financial outcomes and deliver enhanced policy conditions and coverage together with improved levels of service from their respective brokers and insurers.

Moreover, The Lion Partnership could also work with the Local Government Councils and their appointed brokers to ensure a more open, transparent working relationship between the two parties, thereby eliminating any potential or perceived issues regarding broker advocacy or support.

Background

The Lion Partnership was engaged by one of Australia’ largest, privately owned providers of residential aged care to help complete a comprehensive review of their insurance arrangements.

Established for more than 20 years, the client boasted one of the most geographically diversified portfolios of any aged care provider in Australia, with more than 54 facilities housing some 6,000+ residents nationally.

While the client was considered a relatively ‘attractive’ risk from an insurer’s standpoint given their demonstrated commitment towards risk management, a series of recent operational changes brought about by the organisations strong growth and expansion strategies, which included several third party acquisitions and a recent IPO, created a need to review their insurances to ensure they remained adequate.

Approach

The initial phase of the project was to implement and manage a competitive tender process for the provision of insurance broking and risk management services involving a select panel of brokers with proven experience in the aged care and sector.

In addition to the extensive tender exercise, The Lion Partnership’s team also carried out technical reviews on the client’s four major policy wordings; comparing them to alternative products available in the market and highlighting opportunities to address the various deficiencies that were found.

Solution

This process resulted in the client reappointing their incumbent provider who, armed with the findings outlined in the preceding wording review, delivered a number of policy enhancements and improvements in cover combined with premium cost savings exceeding $200,000 per annum; a majority of which were achieved with the incumbent panel of insurers, meaning the client also reaped the long-term benefits associated with insurer continuity.

Background

One of the country's most popular sporting codes key administrators appointed The Lion Partnership to review their insurance arrangements. This included the key areas of Sporting Injury, Group Personal Accident and Professional Indemnity protection for its Players (including junior and local domestic competitions), Officials and Coaches, as well as the associations’ and clubs’ general corporate insurances.

The reviews primary purpose was to identify any opportunities that existed.  So that that they could implement an alternative structure offering a more suitable, tailored and/or rationalised approach that addressed the immediate and long-term needs of each affiliated entity (9 in total) that were involved in administrating the game at both the domestic and professional levels.

Approach

The Lion Partnership considered various complex information at the outset from each affiliate, ranging from coverage and pricing details through to sponsorship arrangements, claims reporting protocols and historical claims information.

Our initial review discovered each affiliated entity across the various states maintained vastly different arrangements, not only about the actual levels of protection in place but also regarding the choice of brokers and insurers. This was because there was no collaboration between the affiliates in previous years, with each entity responsible for arranging their own insurances.

While we were able to identify and suggest alternative program structures and risk financing models for the long-term (e.g. annual aggregate deductibles, tiered program structures and/or a cooperative – a self-insurance model) our primary recommendation was for each affiliate to take advantage of their universal requirements in the immediate future.  We recommend implementing a 'whole of game' solution that would enable them to use their collective buying power to negotiate the optimum program for their players and members.

Solution

Working closely with all the major stakeholders, we managed a detailed broker selection exercise involving numerous candidates chosen by each client's national and state stakeholders. They all had backgrounds in the sporting sector, ranging from more minor boutique broking houses to major global brokers.

The Lion Partnership put all of the affiliates in a position where the group stood to achieve a 30% reduction in their premium pool - which equated to millions of dollars in premium savings. This combined with excellent policy conditions that offered each of the affiliated entities access to market leading coverage.

Moreover, these results were obtainable for each affiliate on a standalone basis, meaning they reaped the group's bulk purchasing power benefits while controlling their own insurance arrangements

Background

A large, technology-based Oil and Gas Exploration Company with operations across Europe, Asia, Africa and the United States was eager to test the suitability of their existing insurance and risk management protocols given their sizable risk profile.

Before engaging The Lion Partnership, the client was utilising the services of several different brokers and had a large number of insurance policies with varying renewal dates throughout the year.

Approach

The Lion Partnership identified opportunities to eliminate duplicate coverages and unnecessary costs by consolidating the numerous programs.

We were able to help the client obtain significantly enhanced levels of coverage while at the same time securing a staggering level of premium savings over $1 million, equating to an overall reduction of more than 32% across their entire program.

Solution

The client was able to engage the services of a truly global broker that, unlike their previous representative, was being remunerated in a more open and transparent manner, while also providing them with a single point of contact to manage the vast global insurance needs.

Background

The Lion Partnership was engaged by the Australian branch of a global not for profit, independent, community-based aid and development organisation. We were asked to help implement a 'master' insurance program that catered for their international affiliates. Many of which were located in "high risk zones" that were notorious for various territorial and people risk exposures. These ranged from political and natural disasters to staff and active volunteers being vulnerable to multiple perils requiring medical, security and/or emergency assistance.

Approach

The Lion Partnership’s role was to work with the client to design and implement effective insurance strategies to deliver a more unified, global program for the group.  We also ensured each affiliate was compliant with the relevant legislation and regulatory requirements in the country in which they operated from.

To deliver the desired outcomes, The Lion Partnership worked with the client to execute a bespoke, comprehensive tender process involving only suitably placed and experienced insurance brokers who had the capacity and global resources necessary to meet the client's requirements both locally and overseas.

Solution

The tender enabled them to leverage their 'economies of scale' to obtain several general program improvements and achieve annual insurance cost savings above twenty 20%. The client realised various process efficiencies and eliminated unnecessary costs by rationalising the number of policies purchased by their overseas affiliates.

The client could also consolidate coverage in several critical areas for many of their global affiliates under their local 'master' program and their overseas offices with automatic coverage and costs benefits afforded under the locally admitted policies controlled out of Australia.

Background

A renowned global Information Technology Company engaged the Lion Partnership with a significant online presence eager to test the adequacy of their insurance arrangements from both a coverage and pricing perspective.

While the client was not displeased with the performance of their incumbent broker, they were eager to save money and had not explored alternative markets for more than ten years.

Approach

A full insurance tender process was carried out, which unearthed numerous inadequacies from a coverage perspective.  Many had occurred due to the incumbent broker's inability to adequately modify the program in line with the client's growth and evolving risk profile. This is a common issue for many organisations that provide internet-based services, given the myriad of ever-changing risks associated with trading online.

Solution

We achieved various insurance policy enhancements and improvements in the cover and the competitive tension brought about by the tender process generated significant cost savings for the client of almost $350,000. This was an overall reduction of nearly 50%. They also benefited from several supplemental specialty services from their newly appointed broker at no additional cost.

Background

The Lion Partnership was approached by a major Australian public research university to conduct a review of their insurance arrangements. With roots dating back to 1887, the university had grown to become one of the largest and wealthiest in Australia, with more than 81,000 vocational and higher education students.

Having more than 80 buildings in one of Australia’s biggest CBD’s in addition to multiple allied campuses and sites in metropolitan areas, the client had a large geographical footprint that left them vulnerable to a number of exposures given the high volume of regular foot traffic from students, faculty and staff and pedestrians.

With a dedicated and focused outlook on better managing their inherent risk exposures, the university was seeking to explore opportunities to improve their existing insurance and risk management arrangements. Accordingly, TLP recommended a holistic approach comprising two core functions.

Approach

Our team carried out detailed technical policy wording appraisals on the client’s major classes of insurance; producing more than 120 pages of commentary that outlined opportunities to rectify a number of perceived weaknesses while also removing several onerous and/or restrictive conditions that were identified.

Then in order to help the university maximise its position in the insurance market, The Lion Partnership managed a comprehensive insurance broker selection exercise involving candidates with a proven track record in the tertiary education space.

Solution

This then generated a significant amount of competitive tension among the respective brokers tendering for the business, which in turn greatly enhanced the client’s ability to not only secure vastly improved levels of insurance protection in line with the preceding wording reviews but also achieve substantial insurance premium savings of more than $485,000 per annum.

Background

The Lion Partnership completed a comprehensive audit and insurance/risk management review for an International Workforce Management Services Provider with revenue of over $250 million.

Approach

The first step in The Lion Partnership’s engagement was to oversee a comprehensive tender process to provide insurance broking and risk management services involving a select group of suitably qualified brokers. The process uncovered numerous program deficiencies and concerns surrounding the incumbent broker's actual position, who it was later discovered was acting as an agent to several insurers and taking undeclared commissions.

Following on from the tender process, we carried out a technical review of the client's major classes of insurance which exposed numerous weaknesses and onerous policy conditions that would have given the insurers in question the right to deny a claim under various scenarios.

Solution

By the end of the process, the International Workforce Management Services Provider client enjoyed vastly improved policy conditions and coverage levels, secured significant premium savings over 30%, and maintained a more open and transparent relationship with a broker that was indeed their advocate.

Background

The Lion Partnership was engaged by one of Australia's largest and busiest Airport's (based on aircraft movements) to carry out an independent review of their commercial insurance and workers compensation programs.

While the Airport was happy with their incumbent broker and insurance carriers, they considered it good corporate governance to review their insurance relationships' efficiency and cost effectiveness, just as they periodically review other service providers.

Approach

We carried out technical policy wording reviews on the clients major classes of insurance and manage a competitive broker tender process. The Lion Partnership’s wording review produced a 125 page report comprising more than 200 comments, observations and /or recommendations for change.

Solution

The client opted to appoint a new broker due to the preceding tender process that had proven experience in the Aviation sector, who later negotiated considerable cost savings of more than $375,000 on behalf of the client.

The newly appointed broker also adopted and placed the proposed wording changes following The Lion Partnership’s technical review, thereby delivering the client with a far superior program from both a coverage and pricing standpoint.

Background

While not dissatisfied with their incumbent insurance broker and risk carriers/insurers, the retail client felt it would be a good corporate governance exercise to engage an independent expert to test their existing insurance arrangements' efficiency and cost effectiveness.

Approach

The Lion Partnership subsequently managed a comprehensive broker tender process on behalf of the client, involving five of Australia's largest brokers. All of them submitted comprehensive proposals of an extremely high standard.

Following on from the tender process, The Lion Partnership worked alongside the newly appointed broker to ensure a complete remarketing exercise involving local and international markets. The Lion Partnership also sought to ensure that the various deficiencies and perceived program weaknesses discovered throughout the tender process were adequately addressed.

Solution

The outcome was a vastly improved insurance program that provided the retail client with a far broader scope of cover than what was previously in place. The client also benefited greatly from a financial standpoint, securing considerable premium savings of more than $900,000 or 30%.

The Lion Partnership also worked in conjunction with both the client and their nominated broker to place a bespoke insurance service level agreement comprising clearly defined service deliverables linked to the brokers remuneration. This allowed the client to easily monitor their brokers performance while also creating a scenario whereby they would be entitled to a rebate if the broker failed to meet their targets.

Background

A major national construction company with annual revenues in excess of $250 million engaged The Lion Partnership to comprehensively review their insurance arrangements as part of a broader corporate governance review.

Approach

The review process included detailed policy wording reviews on their major classes of insurance. This review identified numerous weaknesses and restrictive policy conditions that could have exposed the organisation to substantial financial and reputable damage in a major loss that was not appropriately covered.

Following completion of the initial wording review, The Lion Partnership managed a complete tender exercise to provide insurance broking services involving multiple brokers with extensive expertise in the Construction space, ranging from major global broking firms to small, privately owned local broking houses that specialised in the Construction industry.

Solution

The client opted to reappoint their incumbent broker for a further twelve months subject to the achievement of numerous pre-agreed key performance indicators in line with the clients specific requirements.

We also provided assistance in developing a register of the organisations key risks and an insurable risk gap analysis to ensure the organisations' insurable exposures had been effectively transferred to the market.

Overall, the entire process helped the client secure major coverage enhancements under their insurance program combined with premium savings over 20%, both of which were achieved without changing insurers. This allowed the client to enjoy the long-term benefits of insurer continuity while providing the Board and Senior Management with the Corporate Governance comfort that preempted the review.

Background

The Lion Partnership partnered with a large automotive logistics company and helped them realise significant premium savings of almost 40% with improved levels of insurance cover. This ultimately led to The Lion Partnership being engaged by the parent company - a large logistics services company with annual revenues exceeding $1.1 billion.

Approach

The first phase of The Lion Partnership’s engagement was to implement and manage a competitive broker tender process with a select panel of brokers with proven experience in the logistics sector. This resulted in the client breaking a ten year relationship with their existing broker.

Solution

The newly appointed broker exceeded expectations by delivering more than 36% cost savings while addressing several significantly uninsured exposures. They also provided the client with several technical evaluation and risk advisory related services in the lead up to renewal, including historical claims analysis and insurable risk profiling and gap analysis studies (among others). These helped refine the program to ensure it delivered a tailored, 'fit for purpose solution for the client.

We also carried out technical reviews on the logistics client’s top three major policy wordings, comparing them to alternative insurance products available in the market and providing feedback on areas where improvements could be made. This enabled the newly appointed broker to negotiate further improvements with the client's incumbent insurers by demonstrating that other carriers in the market were willing to insure certain risks that the incumbents were not.

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