A global organization with business units in the manufacturing, energy, and infrastructure sectors faced rising insurance costs and coverage reductions. The hard insurance market meant increased premiums, restricted coverage terms, and decreased capacity were driving business decisions and stymying planned investments. The pressures of inflation imposed additional costs across the spectrum of insurance coverage, driving premiums still higher. Subsequently, the business was forced to react to the challenging market rather than taking a more productive, proactive stance.
BDO took a comprehensive approach that started with an integrated review of the client’s capabilities and opportunities, considering its risk and resiliency; insurance; and claims and recovery processes. This included a focus on recalibrating the risk profile to align with areas of opportunity in consolidating exposures and identifying cost-saving synergies. With each business unit operating in a silo, there were duplicative efforts and insurance policies driving inefficiencies and creating redundant expenditures. BDO helped the client bring the siloed data into a single platform to provide full visibility of aggregated exposures, costs, and opportunities.
With BDO’s assistance, the client was able to consolidate exposures, increase coverage, streamline claims reporting, and ultimately negotiate down premiums paid, resulting in more than $8.5 million in savings opportunities. They also implemented a centralized insurance framework while developing a holistic understanding and standardization of their risk awareness, valuation, and treatment.