Annual Premium Savings of 40% for Transportation and Logistics Company
Following an independent management review, our team provided a comprehensive report on how to structure the risk and insurance programs based on an analysis of coverage and benchmarking. Among other accomplishments, we were able to close coverage gaps and achieve a 40% annual premium savings.
A warehousing, logistics, and transportation company had acquired multiple competitors in the past decade, subsequently becoming one of the largest third-party logistics companies in the United States, with gross revenues more than $1 billion. Prior to UIC, Inc.’s involvement, the company’s risk management program consisted of property, liability, workers compensation, E&O, and ancillary lines, which were purchased on a commodity basis to fulfill customer obligations.
The UIC, Inc. Process and Mantra: AUDIT I MITIGATE I NEGOTIATE I MANAGE
UIC, Inc. performed an independent risk management review and was provided complete access to senior management and all appropriate information. Within several days, the UIC, Inc. team was able to provide a comprehensive report on how to structure the risk and insurance programs. The structure was designed based on analyses of coverage and benchmarking against companies of comparable size and operation. UIC, Inc. proposed a strategy, which, if properly executed, would provide superior coverage at lower costs.
AUDIT | As a result of the company’s insurance program review that was completed, UIC, Inc. discovered inconsistent coverages across all subsidiaries. Not only did the insurance program contain a patchwork of redundant coverages, but due to its complexity, many coverage gaps were discovered that, upon further discussion with management, were assumed to be insured. Furthermore, specific contractual obligations were not actually being met.
UIC, Inc. also identified several large historical claims, which the liability insurer’s claims handling department failed to close in a timely manner. The reserves on these claims continued to impact the company’s loss experience, keeping premiums high and reducing renewal negotiating power.
MITIGATE | During the audit and renewal process, UIC, Inc. was able to untether claims management services from the insurers, introducing third-party administrators to effectively handle all future claims, answering only to the company and quarterbacked by a professional in-house claims representative. Additionally, UIC, Inc. advised management to institute various company-wide safety protocols in order to reduce re-occurring claims.
NEGOTIATE | UIC, Inc. implemented the agreed-upon strategy, drove the renewal process, corrected coverage inefficiencies, and implemented a robust and cost-effective risk management program. UIC, Inc. then met with senior management regularly at company headquarters, establishing a collaborative framework with company stakeholders and offering management a clear scope of work and adhered timetable to meet expectations.
Using its significant intellectual capital with respect to market conditions and risk appetite, UIC, Inc. orchestrated a broker RFP process, fostering competition from both broker and insurer levels. UIC, Inc. developed custom specifications for each line of insurance and negotiated the desired coverages, while leveraging the competitive process to simultaneously lower premium rate.
With UIC, Inc.’s involvement, the following results were realized upon renewal:
- The company’s redundant and gapped insurance program was solved through the design and negotiation of master contracts, providing seamless coverage over their diverse Coverage gaps were closed and continuity obtained.
- Annual premium savings in excess of 40% was achieved, while simultaneously improving coverages across the board.
- Recognition of the company’s need for more direct influence on its claims handling. UIC, Inc. worked hand-in-hand with company management to focus on managing claims Within one year, 80% of open claims were closed at a rate much less than anticipated and reserved by the insurer.
- Policies were instituted to reduce reoccurring claims, providing a safer workplace for employees and a more effective and attractive risk management program.
MANAGE | UIC, Inc. worked with company management to effectively notify and educate appropriate direct line personnel and subsidiaries of the new insurance programs in place, establishing effective risk control protocols and claims safety and notification practices.
UIC, Inc. continued to serve the company well past renewal on all required matters, including claims representation, contract review and implementation, and overall risk advisory, all of which led to hard and soft savings in future years.
See how UIC, Inc. can help you
UIC, Inc. is not affiliated with any brokers, nor holds any agreements with insurers. This affords them the objectivity to provide advice for the sole benefit of their clients. Their depth of knowledge and innovative solutions provide their wide variety of clients with comprehensive, cost effective yet flexible risk management programs for their specific needs. UIC, Inc.’s annual insurance consulting retainers, their only source of income, consistently help clients achieve insurance premium savings averaging 25-40%, offering a significant ROI while at the same time providing appropriate insurance coverage for each company’s specific needs and risk profile. Schedule your complimentary risk management audit now.
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