Why are you Buying Insurance?
We are serious. Not many clients can articulate a balance-sheet consistent rationale.
Your Ideal Coverage
In an ideal world, our sophisticated clients tell us they want the following:
- A single policy, providing protection from overall Balance Sheet/P&L volatility
- Same insurer from year to year, no onerous renewals/switching process
- No counterparty risk (risk of insurer failure)
- That’s it.
In the real world, your insurance inventory typically looks like this:
- Multiple policies, one for each class of business, each with their own dozens of pages of terms and conditions
- Varying insurers from year to year, onerous renewal/switching process
- Very old policy documents often lost, coverage cannot be verified
- No guarantee of insurer security
So what is Holistic Insurance Purchase?
If you have a bespoke product design, optimal to you, it is often assumed that, the larger the broker (and insurer), the more experience they have in that bespoke product. However, the key points which are often missed are:
This then begs the question: “What’s the point of Risk Management?”…..!