UIC, INC. Consultants are one of the world’s leading independent fee-only risk management firms. With no affiliation to any brokers and no agreements with insurers, UIC Consultants affords the objectivity to provide advice for the sole benefit of our clients.
Challenge & Solution
A market-leading consumer products manufacturer and distributor with revenues totaling over $500 million, operating over 200 locations, and a fleet of over 1,500 power units was preparing for an IPO. The company originally retained UIC Consultants on the primary basis of implementing a public directors and officers program in order to confirm adequate insurance levels for proper asset protection to withstand capital market scrutiny. The assignment then transitioned into a review of their entire property and casualty program.
UIC Consultants was retained to provide an independent risk management audit and was given complete access to all requested information. Within several days, it was able to provide a high-level report on the company’s current insurance program, identifying salient coverage weaknesses and gaps and developing a strategy that, if properly executed, would meet all agreed upon goals.
AUDIT | MITIGATE | NEGOTIATE | MANAGE
AUDIT | Once the company’s insurance program review was completed, UIC Consultants established the company’s liability insurance to be the primary risk driver of the program. The company suffered from several catastrophic auto losses, resulting in eroded limits on their primary liability and umbrella policies. Upon further analysis of their loss history, it was determined the client was severely underinsured and lacking vital policy enhancements for a company of its size and scope of operations. The company needed to update its risk profile based on rapid growth, as well as restructure its appropriate risk management program.
MITIGATE | During the audit and renewal process, UIC Consultants helped craft go-forward company policies
to establish risk management practices in line with insurer standards. Due to the fast implementation of such policies,
the client received favorable inspection results from competing insurers, which were leveraged for even greater coverage enhancements and competitive premium rates.
NEGOTIATE | UIC Consultants implemented its agreed upon strategy as identified in the audit process. Using its knowledge of market conditions and risk appetite, UIC Consultants orchestrated a broker RFP process, fostering competition from both broker and insurer levels. UIC Consultants developed custom specifications for each line of insurance, including a 300-point industry leading specification for the public D&O coverage.
With UIC Consultants’ involvement, the following results were achieved:
- Annual premium savings of greater than $3M over the expiring program, and a cumulative savings of over $20M in a seven-year period.
- Negotiated the reduction of outstanding collateral while establishing favorable and concrete loss development factors for the future draw of collateral, preventing insurers from holding on to collateral for long periods of time.
- Doubled primary automobile limits at a lower cost in order to provide a greater cushion against umbrella liability pierces, thus, in combination, generating better protection at a much lower cost.
- The General Liability and Pollution Legal Liability policies were renewed with, respectively, 20 additional coverage endorsements in order to better protect the company from future third-part liability and contractually assumed liability.
- Negotiated and bound first-class D&O coverage for the IPO, inclusive of all of the industry leading coverage enhancements.
MANAGE | UIC Consultants worked with company management to effect a cultural shift in how risk management is treated and the long-term benefits of the new insurance programs in place, establishing effective risk control protocols, claims safety, and notification practices, and participating in casualty claims reviews.
UIC Consultants continued to advise the company well past renewal on all required matters, including claims representation, contract review and implementation, and overall sound risk management practices.