While not dissatisfied with their incumbent insurance broker and risk carriers / insurers, the client felt it would be a good corporate governance exercise to engage an independent expert to test the efficiency and cost effectiveness of their existing arrangements.
The Lion Partnership (TLP) subsequently managed a comprehensive broker tender process on behalf of the client, involving five of Australia’s largest brokers; all of whom submitted comprehensive proposals of an extremely high standard.
Following on from the tender process, TLP worked alongside the newly appointed broker to ensure a complete remarketing exercise was undertaken involving both local and international markets. TLP also sought to ensure that the various deficiencies and perceived program weaknesses discovered throughout the tender process were adequately addressed.
The final outcome was a vastly improved insurance program that provided the 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%.
TLP also worked in conjunction with both the client and their nominated broker to put in place a bespoke service level agreement comprising clearly defined service deliverables that were 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 in the event that the broker failed to meet their targets.