How a Global Business Saved More Than $11M in Insurance Costs

Background & Challenges

Leaders of a large, global company were pressured to reduce expenses across the organization. BDO was engaged by the Chief Risk Officer (CRO) to evaluate the practicality of the insurance program, develop a current state total cost of risk, and determine if cost savings were available.

Approach

BDO catalogued the global insurance policies to understand total premium, coverage, and deductible levels, and evaluated the claims history to understand loss exposure. Our team performed a utilization review of the captive insurance company to determine efficiency and opportunity to insure new coverage. 

Client Impact

BDO helped the client to implement a new global insurance strategy and purchasing framework, saving the client $5.5.M in premium. The client reduced insurance brokerage usage from ten to three, saving $2M in brokerage fees. Finally, BDO restructured their captive insurance company to achieve a one-time savings of $4M and YoY saving of $2M.