Achieve greater value from your Insurance premiums

With world events as unpredictable as ever, managing risk within your organisation has become drastically more important. Therefore, it is imperative that you get the correct level of insurance coverage to suit your business needs. Procurement can help play a vital role, not just in getting you the correct coverage at the best cost, but also ensuring that you have an insurance broker that is delivering high value for you. 

1. Finding the right broker 

Finding the correct insurance broker can be as crucial as selecting the correct policies and coverage levels. Your broker analyses the market, as well as your claims history and risk profile. From here, they make recommendations around your coverage, as well as working with insurers to identify opportunities for you to improve your organisational processes which can subsequently lead to lower premiums. Therefore, it is important that you are reviewing whether your broker is currently working to reduce both cost and risk for your business. 

You should consider reviewing your broker’s performance at the end of each contracted year. Have premiums come down? Has your broker been putting regular calls into the diary to discuss renewal strategy? If not, it may be time to consider a sourcing exercise to identify whether another broker could potentially serve you better. Procurement can lead this by comparing market options and broker remunerations, as well as helping to set clear KPIs that will measure your broker’s performance at the end of each contracted year. 

What the market won't tell you is that organisations such as 7 Step Solutions, due to positioning and volumes, have access to brokers who offer preferential rates and service levels to clients you won't get by your own team sourcing the market as a one off exercise.

2. Optimising Insurance Procurement 

There are other ways in which procurement can help optimise the way your organisation purchases insurance.

Firstly, procurement specialists are expert negotiators and understand how to leverage the best possible terms. By negotiating deductibles, coverage limits and premium structures, you can achieve the best possible coverage. 

Secondly, procurement will ask the challenging questions about the type and level of coverage the business actually needs. Procurement will ensure coverage is optimised, fit for purpose for the term, with one eye on the future.

Lastly, procurement will streamline the renewal process by utilising data captured from previous renewals. By proactively monitoring upcoming renewal cycles, procurement can aid organisations by ensuring they have everything in place to enact a timely insurance sourcing process and renewal. 

3. Procurement and Insurance 

Overall, procurement can assist organisations greatly when it comes to insurance. Not just through improving costs, but ensuring coverage is correct, as well as ensuring your broker is working for you. In today’s competitive landscape, a well-rounded insurance strategy is essential, and procurement can help you achieve optimum value. 

If you have an upcoming insurance renewal and would like some assistance, feel free to reach out to 7 Step Solutions for advice. 

Article by Charlie Wheeler-Jones - Consultant - 7 Step Solutions