Issues

A market-leading consumer products manufacturer and distributor with revenues totaling over $500 million, operating over 200 locations, and a fleet of over 1,500 power units was preparing for an IPO. The company originally retained UIC, Inc. on the primary basis of implementing a public directors and officers program in order to confirm adequate insurance levels for proper asset protection to withstand capital market scrutiny. The assignment then transitioned into a review of their entire property and casualty program.

Action

The UIC, Inc. Process and Mantra: AUDIT I MITIGATE I NEGOTIATE I MANAGE

UIC, Inc. was retained to provide an independent risk management audit and was given complete access to all requested information. Within several days, it was able to provide a high-level report on the company’s current insurance program, identifying salient coverage weaknesses and gaps, and developing a strategy that, if properly executed, would meet all agreed upon goals.

AUDIT | Once the company’s insurance program review was completed, UIC, Inc. established the company’s liability insurance to be the primary risk driver of the program. The company suffered from several catastrophic auto losses, resulting in eroded limits on their primary liability and umbrella policies. Upon further analysis of their loss history, it was determined the client was severely underinsured and lacking vital policy enhancements for a company of its size and scope of operations. The company needed to update its risk profile based on rapid growth, as well as restructure its appropriate risk management program.

MITIGATE | During the audit and renewal process, UIC, Inc. helped craft go-forward company policies to establish risk management practices in line with insurer standards. Due to the fast implementation of such policies, the client received favorable inspection results from competing insurers, which were leveraged for even greater coverage enhancements and competitive premium rates.

NEGOTIATE | UIC, Inc. implemented its agreed upon strategy as identified in the audit process. Using its knowledge of market conditions and risk appetite, UIC, Inc. orchestrated a broker RFP process, fostering competition from both broker and insurer levels. UIC, Inc. developed custom specifications for each line of insurance, including a 300-point industry leading specification for the public D&O coverage.

UIC, Inc. realized cumulative savings of $20 million over a seven-year period for the client’s risk management program.

Impact

With UIC, Inc.’s involvement, the following results were achieved:

  1. Annual premium savings of greater than $3M over the expiring program, and a cumulative savings of over $20M in a seven-year period.
  2. Negotiated the reduction of outstanding collateral while establishing favorable and concrete loss development factors for the future draw of collateral, preventing insurers from holding on to collateral for long periods of time.
  3. Doubled primary automobile limits at a lower cost in order to provide a greater cushion against umbrella liability pierces, thus, in combination, generating better protection at a much lower cost.
  4. The General Liability and Pollution Legal Liability policies were renewed with, respectively, 20 additional coverage endorsements in order to better protect the company from future third-party liability and contractually assumed liability.
  5. Negotiated and bound first class D&O coverage for the IPO, inclusive of all of the industry leading coverage.

MANAGE | UIC, Inc. worked with company management to effect a cultural shift in how risk management is treated and the long-term benefits of the new insurance programs in place, establishing effective risk control protocols, claims safety and notification practices, and participating in casualty claims reviews.

UIC, Inc. continued to advise the company well past renewal on all required matters, including claims representation, contract review and implementation, and overall sound risk management practices.

See how UIC, Inc. can help you

UIC, Inc. is not affiliated with any brokers, nor holds any agreements with insurers. This affords them the objectivity to provide advice for the sole benefit of their clients. Their depth of knowledge and innovative solutions provide their wide variety of clients with comprehensive, cost effective yet flexible risk management programs for their specific needs. UIC, Inc.’s annual insurance consulting retainers, their only source of income, consistently help clients achieve insurance premium savings averaging 25-40{646f7c6a1ab17c4d3df263741c0c21e38cd93db9e57abcdbcb22a4bc94975461}, offering a significant ROI while at the same time providing appropriate insurance coverage for each company’s specific needs and risk profile. Schedule your complimentary risk management audit now.

Case Studies

Millions in Savings for Manufacturing and Distribution Company

Working with our client’s management team, our aim was to create a cultural shift in how risk management as a whole was treated across all areas of business. Using this approach, our consultants were able to secure premium savings totaling over $20 million for our client over a seven-year period.

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Bottom Line Results for Real Estate Investment Firm

Facing a rate increase from its insurers, a large real estate investment firm looked to the UIC team for advice on reducing their premium while maintaining or enhancing their coverage. Working together, we realized a 25% annual premium savings while identifying and negotiating optimal coverage for our client.

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Annual Premium Savings of 40% for Transportation and Logistics Company

Following an independent management review, our team provided a comprehensive report on how to structure the risk and insurance programs based on an analysis of coverage and benchmarking. Among other accomplishments, we were able to close coverage gaps and achieve a 40% annual premium savings.

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Complimentary Audit