Local Government

Local Government group works with TLP's senior partners to optimise their collective insurance arrangements.

Back
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.

Testimonial

“The expert industry knowledge of TLP was the most advantageous during writing the tender, negotiations and evaluation the tender responses. The reports were very well structured and I felt very informed and supported throughout the process.

TLP met and exceeded our expectations. By engaging with TLP it kept the process honest and transparent and ensured we were receiving the most suitable cover at the right price. While cost savings was not the main focus there were considerable savings achieved along with an increase in cover which was a win-win for us."
Mission Australia
Share This
Back to Results

More results

Airport and Aviation
Regional Airport with assets of more than $4bn required a comprehensive review of their commercial insurance and Workers Compensation programs.
Learn More
Not For Profit
International not-for-profit aid and development organisation secures a 20% reduction in annual insurance costs coupled with numerous improvements in cover.
Learn More
Retail
Large national retailer with asset values in excess of $2.5 billion and annual revenue figures of almost $2.7 billion.
Learn More
1 2 3 4

Related News

Is your business at risk? We uncover Australia’s top insurance risks in 2022.
February 9, 2022
Allianz’s recent survey found that supply disruption and cyber breaches pose the biggest threats to corporate Australia over the next 12 months.
Read Article
Your important complete cyber liability market update
August 5, 2021
The Cyber insurance landscape has experienced a dramatic shift over the past 18 months following a sharp uptake in the severity of cyber losses sustained by Australasian businesses.
Read Article
Is your broker getting you the best insurance deal?
July 29, 2021
Going too low on insurance cover is risky for any business. But how can you be sure your insurance premiums are in line with market rates?
Read Article

Mastering the request for Proposal process

Only the right process and the right people will achieve the right results.

Subscribe for insurance market updates

Get regular updates plus all the latest Lion Partnership insights.

Get in touch today

Our industry-leading consultancy team can help your organisation make the most out of its insurance costs.

crossmenuchevron-down