Income protection insurance
The situation
The company wished to:
- Check the premium rate and policy terms are competitive
- Ensure the policy is in line with its employment philosophy
- Consider whether the existing arrangement represents value for money
- Reduce cross subsidies across different trading areas
What we did
- Conduct full insurance market review
- Identify areas that conflict with current philosophy and possible solutions
- Identify innovative insurance structure to transfer the long-term financial risk that the company would not want to bear and not insure short-term liability
- Put forward a solution where economy of scale and purchasing power are maintained but trading areas no longer need significant cross subsidy
Client benefits
- Like for like premium reduced by around £200,000 pa or over 30% and policy terms improved
- Policy is adjusted to allow employer to operate its preferred employment philosophy
- Facilitated greater self-funding in trading areas that preferred this and in a controlled fashion that does not reduce claims control
- More equitable allocation of costs
