Case Study

Relevant Risk: Assets (Property)


Food manufacturer had previously struggled to obtain insurance, due to the nature of their business and their inherent risks.


The company’s struggle to obtain insurance due to the nature of the construction of many of their buildings (EPS Sandwich Panel), was reflected in the significant premium spend and insurer imposed policy deductible’s that could have been detrimental in the event of a catastrophic loss. It was identified that the company had a robust risk management program in place, however it did not encapsulate or address the concerns of the insurance market. Additionally, the strategy to transfer the risk into the insurance market had been non-existent and therefore the risk was poorly presented to the insurance market, which was reflected by the terms and conditions offered by insurers.


It was crucial that the existing risk management program be enhanced to address the concerns of insurers by incorporating a comprehensive risk engineering program and business continuity plan, as well as developing a risk transfer strategy that not only engaged the insurance market in the process, but also educated them on the proposed risk improvements. The market engagement strategy meant the insurance market bought in to the process allowing the negotiations of the terms and condition to incorporate premium rebates and reduced policy deductibles upon staged completions of the agreed risk improvements.


Over three years reduced the policy deductible by $4,500,000 and delivered premium savings in the region of $1,000,000 to the bottom line of the business and enhanced their overall risk management program.