Retail

Large national retailer with asset values in excess of $2.5 billion and annual revenue figures of almost $2.7 billion.

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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.

Testimonial

“It had been some years since Spark did a full review of not only its insurance broker but captive manager and policies. We wanted to ensure we were working with the best and that our policies were best in class and fit for purpose given the transformation of our business over time towards more digital services.

(TLP offered us an) independent review conducted by specialists in the insurance field which is a very unique industry. (Their) independence and the fact we got a full summarised report, score cards and that TLP took care of the work (was a great benefit). It was also great having TLP participate in the presentations to facilitate them but also ask questions".

Chante Mueller
Head of Investor Relations & Assistant Treasurer
Spark NZ

More results

Human Resources
International Workforce Management Services Company discovers their appointed broker of 10+ years is collecting undisclosed commissions on a poorly structured insurance program.
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TECHNOLOGY
Global digital travel business secures significant premium savings in excess of $520k or 13% despite tough conditions in the insurance market while securing improved policy conditions at the same time.
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Local Government
Local Government group works with TLP's senior partners to optimise their collective insurance arrangements.
Learn More
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