Are You Buying Too Much Insurance?

April 1, 2020
  Are You Buying Too Much Insurance? Here’s a simple question that’s a lot more difficult to answer than it first seems: does it make financial sense to purchase insurance? Like most questions, this one has many layers of nuance to it and depends on a large variety of conditions. Many people feel there are cases where buying insurance is the obvious thing to do, but that’s really only the case when you are compelled to do so by law. You may think that insurance premiums are what you pay to defray the costs of a damaging event. Read on...
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Where Does Your Premium Come from and Is It Negotiable?

April 1, 2020
  Where Does Your Premium Come from and Is It Negotiable? Do you know how your insurance premium is calculated? Most people would instinctively answer “I think so” to that question, but a large proportion of those would struggle to explain further, beyond “it depends on our past claims experience” The confusion often comes from the mistaken notion that insurers, and in fact insurance, are about past events and how they translate into risk. The truth is that insurance is all about the future, and understanding that will not only help you understand your premiums but also how to strike...
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Our Thorough Approach

February 1, 2020
A robust step-by-step approach, whichever Healthcheck you choose…   Our reviews cover each of the following areas, according to your Healthcheck Scope    Included in Initial Heathcheck Included in Full Heathcheck I. Your Past Realistic Reserves Data Inventory Core Risk Metrics Legacy Policies: fit for purpose? II. Your Future Risk Appetite Statutory Obligations & Exemptions Data Inventory Expected Maximum Losses (EMLs) EML cash-flow/term profile EMLs: Insurability EMLs: Risk Consistency EMLs: Balance sheet volatility Cost of capital Indirect hedging Non-insurance alternatives III. Your Custom Made Product Optimal product design Structuring and Layering Premium decision range Strength of LTA wording Compensation Scheme...
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Success Stories

February 1, 2020
….. Client examples: all in last 5 years, a select and secretive group of sophisticated Insurance Buyers   Large client (Annual Revenue: >£250m, net assets > £50m) Was paying premiums of c£1m pa (+IPT), now reduced to
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Money back guarantee

February 1, 2020
Let us take you on a journey…with your money back if we don’t deliver.   Money-Back Guarantee If you follow our Full Implementation Plan and it fails to reduce your premiums by at least the Full Implementation Fee, the Full Implementation Fee will be refunded in full. Definitions A Full Implementation Plan is only provided as part of Full (not Initial) Healthchecks, containing recommendations (with timescales) in each of the areas reviewed by the Full Healthcheck (If a Full Healthcheck reveals that Substantial premium savings are not possible or not Safe for your Strategy, a Full Implementation Plan is not...
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What we do

February 1, 2020
We build Your Insurance coverage on solid foundations, bespoke to you   In simple terms, the key parts of our process can be broken down to I. Your Past: You may be over-reserved for existing risks, meaning reserves can be released to safely support buying less future insurance II. Your Future: You may be exempt from normally mandatory covers (e.g. employers’ liability) III. Your Custom-Made Product: You can design your own insurance product to meet your strategic objectives and ask for bespoke product designs from new insurers IV. Your Best Providers:There are thousands of insurance brokers and insurers - not...
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How to guide

February 1, 2020
A robust step-by-step approach, whichever Healthcheck you choose…   How does it work? You decide whether you want the scope of the Healthcheck to be an Initial Healthcheck or a Full Healthcheck: Item What’s covered Included in Initial Healthcheck Included in Full Healthcheck Your Past Adequate reserves for historic risks, Internal and external data for asessing risk, core risk metrics/trends for each class, historic insurers’ solvency II capital coverage/policies still “fit for purpose”? Your Future Your Risk appetite, Risk Financing timeframe and Risk exit strategy, statutory obligations/exemptions, Your EMLs (expected maximum losses), their cash-flow/term profile, Insurability, existing hedging, corporate context,...
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But we’re serious

February 1, 2020
A bit of humour…..   “Ask John to perform his version of Search and Destroy on your premiums” (Iggy) “All the advice, all the savings, all the advice” (Donald) “Reassuringly expensive” (one of John’s clients for over 20 years) Joking aside, we're deadly serious about reducing your premiums…... significantly, safely and strategically…. Reducing Premiums Significantly is Easy! Yes, it is, and we see it often! Simples – just increase your excesses and/or stop buying some policies (eg Personal Accident), because “you never claim on them” Alternatively, buy from the cheapest provider and rely on FSCS compensation in the event of...
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When insurance companies fail to deliver

February 1, 2020
Insurance Company Failure: The Risk of Inadequate Risk Management Insurance companies, like any other venture, are susceptible to insolvency. In fact, as organisations that manage the risks which others do not want, insurers are uniquely positioned to fail under certain circumstances. It’s not something that insurance companies make much noise about, but it’s certainly a reality that they need to contend with. In essence, each insurance policy is an “educated guess”, the insurer forecasting that the claims arising will fall within their expectations (their “pricing assumptions” or “educated guesses”). Underwriters (and their actuaries) are well versed in making carefully calculated...
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What do insurance actuaries actually do? Why should it matter to you?

February 1, 2020
What Do Insurance Actuaries Actually Do? Why Should it Matter to Insurance Buyers? The role of insurance actuaries isn’t very well understood outside of the industry, but actuaries play a crucial part in several areas relevant to consumers. The functions of underwriters and actuaries are related, but not identical, and often confused. Actuarial duties broadly fall into three primary areas: reserving, pricing, and capital modelling. This article will look at those areas in-depth and further explain why it’s important for insurance buyers to know about actuarial duties, and even better, find a good actuary to be “on their side” for...
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