Assessing Insurance provider performance

A strong and healthy long-term relationship between a client and their insurance provider can provide significant benefits to all parties. However, sometimes such long-term relationships can lead to poor value for money, with costs increasing annually without proper review of service levels and your needs, ultimately resulting in poor corporate governance.

Podium’s insurance provider performance review service is a low cost, high value service that provides independent, objective and transparent advice assisting you in evaluating the services provided by your insurers, brokers or other intermediaries.

You benefit from our knowledge of international best practice covering the scope, quality and effectiveness of the services provided, and the insurance providers welcome the opportunity to reassess and refresh their delivery team and the quality of the services they provide to you.

Collaborative and confidential, the assessment ensures the well being of this important business relationship for you and involves:

• Establishing your specific service needs – we work with you to define your specific service needs as well as gain a clear understanding of your risk retention and risk transfer strategy, the structure of your existing programme, how it is serviced (including roles and responsibilities), any recent or planned changes in your business profile, any significant claims issues and your internal risk management policies and procedures.

• Creating a weighted service brief – armed with this information, we produce a weighted brief of the specific services you need.

• Interviewing your provider’s service team – to establish their understanding of your service needs and how they are currently seeking to meet them.

• Conducting a gap analysis – we identify and highlight any areas where there is a mismatch between your actual service needs and the services you are currently being provided.

• Assessing value for money – based on the service that is being provided and our knowledge of the insurance market, we independently assess whether you are getting value for money from the fees you pay to your provider and any other income that your provider earns from your account.

• Report and recommendations – we deliver to you a detailed report on our findings together with recommended steps you should take to remedy any deficiencies in the service you are receiving from your provider.

• Presenting our report – if required, we are happy to present our report to your Board or Audit Committee and conduct a Q&A session to answer any questions you may have in relation to our findings.

Insurance provider procurement services

Good corporate governance requires all businesses and organisations to regularly access and monitor the effectiveness of outsourced activities. In the insurance arena, it is, therefore, important that you have effective processes in place for assessing and monitoring your insurance provider’s performance.

Following our independent insurance provider performance review, it is often our preference to work with our clients and their current insurance provider to enhance their existing insurance arrangements and service delivery. However if your provider is not willing or is unable to improve its service delivery then we recommend conducting a formal insurance provider tender.

Insurance provider tenders can be quite demanding and involve significant resources from your management. Podium can assist by managing the whole process for you, from setting out the tender objectives to facilitating the appointment decision.

Ultimately Podium will provide a system that optimises sustainable competitive advantage for you and your business. Our process aims to develop and secure a responsive solution capable of meeting current and future needs in terms of quality, delivery, cost, technology, flexibility and service.

Specifically we can provide the following services:

• Establishing your specific needs by working with you to define your service requirements as well as gain a clear understanding of your risk retention and risk transfer strategy, the structure of your existing programme, how it is serviced (including roles and responsibilities), any recent or planned changes in your business profile, any significant claims issues and your internal risk management policies and procedures.

• Identify the most suitable providers to invite to tender.

• Draft the invitation to tender, which is aligned to your needs.

• Develop the tender document in consultation with you which will include the rules of engagement and timeline, draft service agreement, information which will enable the tenderer to provide quotation terms including underwriting information and claims experience by class of insurance.  Scope of services required to be provided and an outline of the current insurance program.

• Issue the tender and monitor compliance with the rules of engagement.

• Meet with participating tenderers and respond to any requests for further information.

• Develop an assessment template against which all tenders will be assessed.

• Review the tender submissions and provide a scoring guide against the established assessment template.

• Review and investigate references.

• Coordinate and host formal presentations if required.

• Assist you in the decision making and selection of the successful tenderer.

• Develop a formal service agreement, which will include appropriate and measurable key performance indicators and a model for ongoing performance management.

• Appointment of successful tenderer.

• Advise on program placement questions, whilst is would not be our role to second guess the work of the appointed provider, to assist you we would comment on any questions asked of you by the provider during the actual placement of your program in the market.

Formalising Insurance Broker Service Agreements

Podium Risk Advisory can help you to draft an insurance broker service agreement, which comprehensively captures the services to be provided, required service levels, fee structure, payment arrangement and measurable key performance indicators (KPI’s).

We can also assist you to monitor the ongoing performance of your insurance provider to ensure they continue to deliver against their agreed service contract and KPI’s.

Insurance policy drafting

Each organisation has insurance needs specific to their business and accordingly insurance policy wordings should reflect these needs rather than simply being off the shelf or pre agreed facility wordings.

If you do not believe that your insurance coverage underpins the risks associated with your business, we can review your program and advise if there is an opportunity to redraft some or all of your policies to provide the cover you seek. We can then guide you when instructing your insurance provider’s.

In-house risk advisory functions

Many organisations do not employ an insurance and risk manager. That role is often performed part-time by the finance director, company secretary or accountant. In competitive insurance market cycles, this role may appear easier for a company to manage in this fashion. However, we often see poorly drafted policy wordings, which do not suit a client’s needs. Cheaper prices can often be accompanied by inferior coverage and more often than not your insurance broker does not continually assess this or is restricted by market availability.

Australia remains affected by world events and due to its size also needs capacity from overseas insurers and reinsurers. The insurance market remains cyclical and the next hard market is only a matter of time. This demands a strong commitment to planning for future hard markets. With a reduction of insurance companies/underwriters insurance and risk should be a significant subject for the boardroom.
If you do not have in-house insurance and risk management expertise, we can provide you with independent help and support to make sure you have effective control of your insurance arrangements.

Our team will ensure you secure the optimum terms and conditions, and we will also share our knowledge with you to help build your company’s own expertise for the future.

We are not a replacement for an insurance brokers. In our role as insurance and risk advisor on an outsourced basis we:

• Develop strategies with brokers and insurance companies.

• Provide independent internal advice on the ramifications of the prevailing insurance market conditions.

• Provide objective advice ensuring the correct risk reward balance, i.e. cost versus cover.

• Harmoniously improve broker performance by working constructively with them and managing them in the fulfilment of agreed performance requirements and Service plans, which detail expectations on delivery of specific tasks during the annual fee period.

Undertaking due diligence on acquisitions and disposals

Insurance and risk program reviews are also a useful process in a merger or acquisition. They can help to determine where benefit could be derived from consolidating insurances. Benefits such as cost and scope of cover can be measured. Contingent liabilities can be identified.

Mergers and acquisitions also have a range of specific considerations:

• Exposure to liability for long tail claims.

• Retrenchment – impact on workers compensation premiums. Will there be any impact on Employment Practices Liability insurance?

• Self-insurer for workers compensation – are reserves adequate?

• Environmental liability.

• Directors and Officers Liability “run off” cover.

• Acquiring company’s directors & officers liability insurance.

• Outstanding claims – is liability or indemnity in dispute?

• Circumstances which should be reported under “claims made” contracts of insurance.

• Security of the insurers and ability to settle “long-tail” claims.

There are some insurance contracts available for “warranties & indemnities” protection and other merger risks

We provide confidential, independent and professional due diligence services in disposal and acquisition situations and can assist you to procure the appropriate providers who have the credentials needed to deliver your desired outcomes.

Holistic insurance and risk strategy

Strategic business goals evolve over time and it is important your approach to insurance and risk reflects this so that you maintain the right type and extent of protection.

We work with clients to set clear insurance and risk objectives and policies. We can also help with implementation to make sure these new objectives are fully aligned to the business.

A correctly implemented holistic insurance and risk strategy generally requires the services of more than one provider/specialist, as opposed to settling for in-house resources of existing service providers. Our approach is to assist you in identifying and appointing the most skilled providers in the area of:-

• Business interruption/business continuity/crisis management planning.

• Capital based risk modelling/financial analysis

• Legal advisers

• Post loss investigations

• Property valuation

• Risk surveyors

• Workers compensation

Client relationship and service reviews

Client retention is essential for any insurance intermediary to succeed and grow. However, it is often new business that receives the greatest focus and resource. As a consequence, client relationships change and service levels can drop and important clients may be lost. There are many reasons why a client may move their business, but nearly all can be avoided, if picked up early and addressed.

Podium offers a comprehensive client relationship and service review to help intermediaries retain clients and as a result directly improve profitability.

Through an interview process with the client and your service team we assess the key areas of client satisfaction. The process reinforces and refreshes the relationship and provides insights that significantly improve client retention rates.

Insured relationship and service reviews

It is sometimes difficult to establish why an Insured buys insurance services and products from a certain Insurance Market. Cost is often named as the key differentiator, but we have found it is much more complex than this, with brand, policy coverage, financial strength, integrity and claims service driving many buying decisions.

Through a series of specially structured interviews with your Insured(s) we identify what is important to them and what you must get right to retain and win more business. We have a unique ranking tool that lists the top differentiators so you can make better informed business decisions. We also add our own special insights so you have the broadest picture possible.

Intermediary relationship and service reviews

The Insurer and Intermediary relationship should be mutually beneficial and keep focus on the simple fact that providing the best product and services jointly for the Insured will create the most value for both organisations.

Sometimes a misunderstanding of each organisations’ priorities and needs prevents this optimum business relationship. At Podium we can help create understanding through improving the quality of communication and discussion between insurance markets and their intermediary partners.

We do this by a series of specially targeted interviews and market research, which we deliver in a clear format so you know where to direct your resources and play to your strengths. We have also facilitated Insurer/Intermediary discussions as part of this process, often with positive and surprising outcomes for both partners.

New Business process review

The development of high quality new business processes that are consistently executed across the business remains one of the biggest challenges facing the insurance intermediary community.

At Podium we have a number of client specific and business wide processes that can make a significant difference in increasing deal flow and new business conversion rates.

Our approach is based on embedding a sales culture from the ground up in an organisation and the smart use of your most talented sales people.

Optimise product distribution and servicing

The insurance industry is experiencing a wave of innovation in product distribution and servicing. Businesses need to deliver products quickly, expand and integrate distribution channels and improve customer service in an increasingly competitive and regulated environment. Those that implement effective solutions can achieve competitive advantage.

Podium can provide guidance on how to take advantage of technology to optimise product distribution and servicing.

RFP response strategy and development and presentation coaching

Podium’s position as a leading RFP and insurance provider procurement service provider allows us unrivalled insights into what it takes for you to win new business.

Our service will help to ensure your RFP response is best in class and consequently improve your new business win rate.

When you are through to the oral presentation stage of the tender process we are also there to help you make the most of the opportunity by selecting the winning messages and crafting how these are best delivered.

We work exclusively with one client at a time per individual RFP.

Bespoke research into new markets/new industry underwriting sectors

Podium can assist in providing insights to Insurers who are looking to move into new markets and/or industry sectors.

Our clients have found that our knowledge of specific industry sectors as well as the broader market place makes a significant difference as part of any due diligence process. Our aim is to provide the colour to the competitive landscape so you make the best business decisions.

Developing insurance offers for affinity groups and large brands

Many organisations enjoy having a strong brand or affinity amongst their members, customers or clients that can be capitalised upon through the provision of tailored insurance offers.

Podium has the experience and expertise to develop affinity offers. Our success with professional bodies, trade groups and large brands results from focusing on the insurance needs of the members or devotees of the brands. So, we tailor insurance products and services to deliver special and unique benefits.

Additionally, if you already have an affinity offer that needs a fresh look and overhaul to be a real benefit and increase penetration levels, Podium can assist.

Because we are independent of insurance providers we can be objectively focused on what’s best for your members, customers or clients, not just what’s on the shelf. We can also advise on the most appropriate strategy, for example are you best served by using an insurance intermediary, or dealing directly with an insurer/underwriter.

We are extremely flexible in how we work. We can act as consultants through to profit sharing partners. And we can deal with everything you require… research, marketing, partner selection, product development and regulation.

Podium’s approach ensures success by addressing the following critical success factors:

• Developing a broad range of products and services specifically designed to meet the ultimate customer’s needs.

• Ensuring offers demonstrate the affinity group’s vision of serving its members, customers and clients

• Linking, where appropriate, to other affinity offers to differentiate the services and add value

• Negotiating competitive terms.

• Involving the right partner(s) with full commitment to product and service development and with a track record of excellent administration, delivery and claims handling.

• Documenting a service agreement and commercial contract.

• Planning and delivering innovative and excellent marketing and communication.

• Putting in systems for efficient administration and monitoring.

Building insurance elements into memberships, products and services

Many organisations may have memberships, products and services that can be enhanced through incorporating an insurance element. By doing so you would gain a competitive advantage and earn a valuable new revenue stream.

Podium have assisted many organisations looking at the potential to gain competitive advantage and earn new revenue streams by including insurance in their offers. We can undertake the initial feasibility study and then find suitable partners.