Scenario: One of CRS’ longest-standing clients, a large global PE firm, invested in the creation of a leading sustainable construction materials company via the combination of two significant acquisitions (one privately held stand-alone concrete fly-ash business in the US and a subsidiary business of an AUS publicly traded building materials company). CRS was approached by the new CEO and co-investor in September 2022 to lead a working party to review all elements of their risk and insurance program due to the excessive pricing they received upon closing. CRS was asked to identify opportunities to reduce premium expenses, reduce exposure to retained loss, analyze the data being used for the marketing and underwriting and create an aggressive renewal strategy for the February 2023 renewal.
In the midst of the engagement, CRS led a rigorous broker tender that landed on an exceptional broking team who was committed to CRS’ savings target, alignment of broker compensation (compensation reduction of over $500K), execution and achievement of CRS’ guided protections and access to alternative capacity.
Action: CRS orchestrated management presentations to all viable global carriers, restructured the programs (especially casualty program to achieve Silica protection, first time). CRS directly organized property risk control engineering visits (+/- approx. 5 sites), executive level underwriter meetings, loss modeling and analytics relating to property perils such as fire, explosion, flood, and quake, building an actuarial basis for deductible levels in the casualty programs, identifying processes to more accurately identify internal reserve accruals, and budgeting (and drove a more refined and predictable loss forecast for the insurance teams). CRS created the platform for the new business to rely on an aligned internal and external, long-standing relationship with a technical brokerage team and a panel of specialized underwriting partners. CRS advocated for the creation of a needed, internal risk management team which fully integrates EH&S and is working with the executives to implement the same.
Outcome: CRS worked with the new technical broker to replace all incumbent carriers, ultimately reduced the total YoY cost basis by $2.4MM. The client was able to apply savings into its investment return, at the same time was able to apply the savings to significantly reduce their Auto, General Liability and Property deductibles and restructure the insurance programs, better protecting the enterprise while still capturing $1.7MM net savings at binding. CRS also provided access to an alternative capital facility that replaced the Letters of Credit on deposit with insurers.