Insurance premiums are one of those costs that tend to get renewed rather than reviewed. A new invoice arrives, it gets signed off, and the rate creeps up year after year. A proper tender process changes that.
The challenge
A regional hotel chain had been renewing its insurance without putting it to a proper tender. Premiums had been rising year on year with no substantive review of the market, the coverage, or what competing providers would offer. For a group of this size and type, the premium was above what the benchmarks supported.
What we did
We ran a Profit Boost Review. The insurance line in the financials was tested against benchmarks and identified as an opportunity. We worked with the client to run a thorough review of the existing coverage and a competitive tender process. The client brought their knowledge of the business’s specific risks and coverage requirements; we brought the benchmark data and the framework for running the process.
The recommendation was to complete the tender, set a target premium reduction, and track the outcome. The process took three months from start to finish.
The result
- Insurance premium: $29,000 saving per year, an 11% reduction
Achieved within three months. No change to coverage. No compromise on the business’s protection. Just the right process applied to a cost that had not been properly reviewed: review it, quantify it, report it – business then implement it.
