The essential elements of a fit for purpose Corporate Insurance Programme are;
- risk information and accuracy
- programme design and maintenance
- marketing and insurer negotiation process
- insurer selection process
- scope of policy wordings
- relationships with insurers
It is imperative that accurate risk information is sourced and provided at the onset of incepting new business, carrying out annual reviews and throughout the client/broker relationship. There is a risk to the client, when only limited risk information is provided, as Insurers will not only adopt a more cautious approach to their offering of premiums and terms of cover but may also be able to exercise a legal right to decline subsequent claims due to non-disclosure of material facts.
Wallace McLean’s approach, is to design a fit for purpose insurance programme and to draft the underwriting submissions on which it is based, following a detailed risk profiling exercise. We then implement regular risk and insurance status review discussions with our client for the purpose of identifying, analyzing, managing and documenting new risks in their unique, evolving business environment. These regular review meetings will also enable us to proactively update insurers and modify your insurance coverage as necessary. This involves determining which risks should be insured and for how much. These answers are best developed from the risk profiling process which includes claims and loss analysis – past losses modeled forward to project expected future losses, in tandem with the results of the marketing and negotiation process with insurers, to ascertain the most cost effective level in respect of each policy, thus by necessity the insurance programme design process has two phases; one before and one after the marketing and negotiation phase and Wallace McLean undertakes two pre-renewal client meetings, a pre-marketing (strategy) and a post-marketing (options and recommendations presentation) meeting.
In addition to conventional insurance structures, Wallace McLean’s senior employees have extensive experience in arranging more bespoke forms of risk transfer and risk financing solutions for major clients and in multiple jurisdictions allowing for a programme design may yield significant net cost savings or other benefits for our clients.
Insurer Relationships, Marketing and Negotiation Process
Wallace McLean has well developed relationships with all of the major underwriters for corporate insurance programmes in New Zealand as well as with overseas insurance markets engaged in writing New Zealand business.
The enthusiasm of Insurers is highly dependent on the quality of risk information provided in each underwriting submission, particularly where proactive risk management processes can be highlighted, therefore it is always a key objective for Wallace McLean to facilitate the risk profiling process.
Aside from risk profile, it is also important to Insurers that they can rely on the honesty and technical competency of the broker that is representing risks to them. Wallace McLean has earned the respect and trust of all key insurers stemming from our senior employees’ decades of high level insurance industry experience, including Nigel Wallace’s influential role as the incumbent Chairman of Brokernet, a network of New Zealand insurance brokers placing in excess of quarter of a billion dollars of premium annually into local and global insurance markets.
Insurer Selection Process
Whilst premium costs are always of high importance, unfortunately that is often the sole focus of insurance brokers in presenting quotes to their clients for consideration. There are several other critically important factors that should also be considered to ensure that the insurers that you select are not only cost effective but will also be responsive when called upon to settle claims e.g. financial stability, claims paying attitudes, scope of policy coverage and value placed on relationships.
As part of the Brokernet group, we have our own agreed policy wordings with the major underwriters. Brokernet centrally negotiates much broader policies that have wide agreement across the insurance market for all major classes of insurance. Standard insurance company policy wordings tend to be narrow in coverage in order to protect the interest of the party drafting the contract. These are starting bases from which Wallace McLean will, during the programme design phase, refine and tailor extended coverage according to each client’s risk profile.
Specialist knowledge is of the risks inherent to each industry, as well as an in-depth understanding of the insurance market’s capabilities of covering those risks, are essentials in drafting effective policy wordings. Wallace McLean has expertise across a very wide range of industries including; primary industries, manufacturing, food and beverage, tourism and hospitality, transportation, construction, healthcare, retail, utilities, IT, professions, financial institutions, to name just a few.