Keeping Costs At Bay. A look at what steps to take to keep insurance costs under control.
At Glennon we use a structured approach regarding premium negotiations with insurers and will work with our clients to complete detailed preparations, which we outline in this article, to help reduce insurance costs or to mitigate rising premiums.
Fail to prepare, prepare to fail!
This maxim is as true in the insurance world as it is in the business and sports worlds.
What are the practical steps?
- Commence initial preparation and information gathering 3 months in advance of renewal.
- Collate any claims data and make sure that this is current and up to date.
- Challenge insurer’s reserves on claims.
- Investigate claims which are unlikely to recur and endeavour to have them ignored in the negotiations.
- Ensure, as your broker, that we have all of the information we need to outline to the insurer how and why a claim occurred – particularly if there are mitigating factors.
- Identify risk management initiatives employed with particular emphasis on those which help to eliminate the likelihood of a claim reoccurring and ensure insurers take them into account.
- Prepare a detailed presentation for insurers to reflect as many positive features as possible.
- Schedule adequate time for this process.
By following these preparatory steps we can maximise potential competition for your business between insurers.
We seek to ensure that your risk is presented to the insurance market in the most positive way. This means insurers should consider your risk more favourably and therefore provide you with more competitive premiums, policy terms and conditions.
All this seems very simple but it is surprising how many insurance buyers don’t adequately plan for this process. The outcome of the process is often in direct proportion to the time and effort put in i.e. less time given to preparation = probable increased premium. A planned approach with adequate time = an increased likelihood of a positive outcome.
To discuss an upcoming renewal or any other Commercial Insurance, Personal Insurance, Life Assurance, Financial Planning or Employee Benefits requirements you may have, contact Glennon today.
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