Success Stories
Organization: privately-held, multi-state REIT with commercial properties predominantly in South Florida and Washington DC area - Total property portfolio value=$154M
Situation: after experiencing a series of direct (property and Boiler & Machinery) and indirect (business income and extra expense) damages totaling over $10M, the Company?s long time property insurer refused to renew and the best alternative was a 3 fold premium increase. Given the difficult economy in combination with the prospect for a significantly increased insurance bill, the company was confronted with the possibility of "handing over the keys to the lender"
Outcome: after we identified and worked with our client to correct several loss control requirements - we developed detailed models and specifications, which illustrated financially our client?s new risk profile and their substantial improvement in value at risk despite the total insured values increasing more than 20%.
Total savings = $300,000
Organization: CO-OP Building valued at $240 M in Midtown, Manhattan (330+Units)
Situation: After the significant catastrophic windstorm losses incurred in 2004 & 2005 - many insurance companies enacted automatic rate increases in an attempt to recoup losses. The incumbent underwriter indicated a 15%+ rate increase 30 days prior to the renewal. Other issues included:
Organization: UK based Privately-held construction company with $1.5B-USD in annual sales worldwide
Situation: After a series of successful acquisitions, it became apparent to management that there was a need to consolidate the global insurance program. After being engaged to restructure the insurance programs for two divisions (US/Canada and Latin America) we quickly realized how acute the problem was-between the two divisions there were 26 brokers and over 80 insurers. Not only did we discover that some entities were not covered, we also found entire business segments that were not insured.
Outcome: From an administration viewpoint, in less than 6 months we consolidated the brokerage relationships from 26 to 1, insurers from 81 to 16 and policy renewals from 39 to 11 per year. Our client estimates this streamlining alone will save them over 100 hours of management?s time annually. By eliminating just the redundant coverage, our client saved more in premiums than the cost of our services.
Organization: privately-held, multi-state REIT with commercial properties predominantly in South Florida and Washington DC area - Total property portfolio value=$154M
Situation: after experiencing a series of direct (property and Boiler & Machinery) and indirect (business income and extra expense) damages totaling over $10M, the Company?s long time property insurer refused to renew and the best alternative was a 3 fold premium increase. Given the difficult economy in combination with the prospect for a significantly increased insurance bill, the company was confronted with the possibility of "handing over the keys to the lender"
Outcome: after we identified and worked with our client to correct several loss control requirements - we developed detailed models and specifications, which illustrated financially our client?s new risk profile and their substantial improvement in value at risk despite the total insured values increasing more than 20%.
Total savings = $300,000
Organization: CO-OP Building valued at $240 M in Midtown, Manhattan (330+Units)
Situation: After the significant catastrophic windstorm losses incurred in 2004 & 2005 - many insurance companies enacted automatic rate increases in an attempt to recoup losses. The incumbent underwriter indicated a 15%+ rate increase 30 days prior to the renewal. Other issues included:
- Non-Sprinklered Building
- Concentration of Risk (risk located close to other high profile buildings)
- Mixed use Building (Office + CO-OP)
- Inviting several markets to conduct loss control survey to building
- Pre-renewal strategy meeting with incumbents and prospective markets
- Achieved a 10% rate reduction from the expiring program
Organization: UK based Privately-held construction company with $1.5B-USD in annual sales worldwide
Situation: After a series of successful acquisitions, it became apparent to management that there was a need to consolidate the global insurance program. After being engaged to restructure the insurance programs for two divisions (US/Canada and Latin America) we quickly realized how acute the problem was-between the two divisions there were 26 brokers and over 80 insurers. Not only did we discover that some entities were not covered, we also found entire business segments that were not insured.
Outcome: From an administration viewpoint, in less than 6 months we consolidated the brokerage relationships from 26 to 1, insurers from 81 to 16 and policy renewals from 39 to 11 per year. Our client estimates this streamlining alone will save them over 100 hours of management?s time annually. By eliminating just the redundant coverage, our client saved more in premiums than the cost of our services.
