The client’s challenge:

A prominent property company, managing a diverse portfolio of over 150 properties across residential, commercial, office, retail, industrial, and hotel sectors, faced significant challenges with their insurance strategy. Their existing approach involved:

• Fragmented Renewals: Managing over 150 individual renewals annually, leading to excessive administrative burden and time consumption.
• Disparate Coverage: Insuring properties individually with various insurers, resulting in inconsistent coverage levels and potential gaps.
• Inefficient Cost Management: Lack of consolidated buying power, leading to potentially inflated premiums and unpredictable costs.
• Acquisition Uncertainty: Difficulty in rapidly securing appropriate coverage for newly acquired properties due to varying survey availability and information delays.

The Solution:

Our team partnered with the client to revolutionise their insurance programme, implementing a comprehensive strategy that included:

• Portfolio Segmentation: Dividing the portfolio into two distinct segments: residential and commercial, enabling tailored insurance solutions.
• Comprehensive Coverage and Insurer Assessment: Conducting a thorough analysis of existing coverage and insurer relationships to identify areas for improvement and optimisation.
• Strategic Insurer Consolidation: Leveraging our expertise to maximise strong insurer relationships, securing economies of scale and favourable terms.
• Renewal Date Unification: Consolidating all renewals into two key dates, significantly reducing administrative overhead and streamlining management.
• Risk Management Bursary: Establishing a dedicated risk management fund, empowering the client to invest in proactive risk mitigation measures and property enhancements.
• Streamlined Servicing Proposal: Implementing a standardised and efficient servicing proposal, ensuring consistent and responsive support.
• Acquisition Streamlining: Building a strong relationship with select insurers, creating a streamlined process for insuring new acquisitions, even with limited initial information.

The Outcome:

The implementation of our tailored insurance programme delivered substantial benefits, including:

• Significant Cost Savings: Reduced premium expenditure through consolidated buying power and optimised coverage.
• Enhanced Efficiency: Drastic reduction in administrative burden and time spent managing renewals.
• Improved Coverage Consistency: Standardised coverage across the portfolio, minimising gaps and maximising protection.
• Reduced Uncertainty: Streamlined acquisition process and consolidated renewal dates provided greater predictability and control.
• Increased Investment Potential: Savings generated from reduced premiums were reinvested into the portfolio, enhancing property value and tenant satisfaction.
• Strategic Flexibility: A unified programme allows for quick and efficient movement of the entire portfolio should the need arise.
• Enhanced Tenant Proposition: The risk management bursary and proactive risk mitigation directly benefit tenants through improved property safety and maintenance.

Key Takeaways:

• Consolidating fragmented insurance portfolios can unlock significant cost savings and operational efficiencies.
• Strategic insurer relationships are crucial for securing favourable terms and maximising buying power.
• Proactive risk management and streamlined acquisition processes enhance property value and reduce uncertainty.
• A tailored insurance programme can empower property owners to reinvest savings and enhance tenant satisfaction.

To find out more about how Vista Insurance can help you and your business, get in touch with our colleague Terry Edwards by emailing terry@vistainsurance.co.uk or calling 07950 919511

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