Why you should review your portfolio’s insurances

7 May 2024

Why you should review your portfolio’s insurances

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Secure better protection, receive enhanced service, minimise and reduce your premiums.

At Vista we work with investors to optimise insurance coverage for their portfolio companies, focusing on securing better protection, enhanced service, and support, while also aiming to minimize or reduce premiums where possible. This is a valuable service, and conducting due diligence in this context would involve assessing various aspects of the insurance coverage and relationships. Here are some specific considerations:

1.            Coverage Analysis:

Conduct a thorough analysis of the existing insurance coverage for each portfolio company. Understand the scope of coverage, exclusions, and any limitations in the policies.

2.            Risk Assessment:

Evaluate the specific risks faced by each portfolio company. This may include industry-specific risks, operational risks, and other factors that could impact insurance needs.

3.            Policy Terms and Conditions:

Review the terms and conditions of the insurance policies. Ensure that they align with the specific needs and risks of each portfolio company.

4.            Service and Support:

Assess the level of service and support provided by the insurance advisors. This includes communication, claims processing efficiency, and responsiveness to client needs.

5.            Premium Analysis:

Analyze the current premium rates and seek to understand the factors influencing them. Identify opportunities for cost savings or premium reductions without compromising coverage.

6.            Market Comparison:

Compare the existing insurance coverage and premiums with offerings from other insurance providers in the market. This can help determine if there are more competitive options available.

7.            Loss History:

Review the historical loss data for each portfolio company. A strong loss history may provide leverage for negotiating better terms with insurance providers.

8.            Risk Mitigation Strategies:

Work with portfolio companies to implement risk mitigation strategies that could positively impact insurance premiums. This might include improving safety protocols or implementing measures to reduce certain types of risks.

9.            Compliance Check:

Ensure that all insurance policies are in compliance with regulatory requirements. Non-compliance could lead to fines or gaps in coverage.

10.         Communication Strategy:

Develop a clear communication strategy for conveying changes or updates in insurance coverage to investors and portfolio companies. Effective communication is crucial in managing expectations and building trust.

11.         Long-Term Planning:

Work with investors to develop a long-term insurance strategy for their portfolio. This includes anticipating future needs and ensuring that the insurance coverage aligns with the overall investment strategy.

12.         Benchmarking:

Benchmark the insurance programs against industry standards to ensure that the coverage and terms are competitive and in line with best practices.

Remember that the due diligence process should be tailored to the specific needs and characteristics of each portfolio company and its industry. Regular reviews and updates to the insurance strategy are essential to adapt to changing business environments and risks.

To find out more about how Vista can help you and your business, get in touch with us at: or call us on 0161 393 7111.

To check out our Private Equity Portfolio Review Brochure, click here