TLP was appointed by key administrators of one of the country’s most popular sporting codes to conduct a review of 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 primary purpose of the review was to identify any opportunities that existed to 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.
This required TLP to consider a variety of 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 in relation to the actual levels of protection in place, but also regarding the choice of brokers and insurers. This was owed largely to the fact that there was no collaboration between the affiliates in previous years, with each entity responsible for arranging their own insurances.
Accordingly, 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 by 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.
As a result, TLP, working closely with all the major stakeholders, managed a detailed broker selection exercise involving numerous candidates chosen by each of the clients national and state stakeholders, all of whom had backgrounds in the sporting sector; ranging from smaller, boutique broking houses to major global brokers.
Ultimately, TLP was able to put all of the affiliates in a position whereby the group, as a collective, stood to achieve a 30% reduction in their premium pool - which equated to millions of dollars in premium savings - combined with superior 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 benefits of the group’s bulk purchasing power while controlling their own insurance arrangements.