A leading IT company in India was on the lookout for an insurance broker to address its wide-ranging indemnity requirements whilst offering maximum coverage. The organization partnered with PINC Insure for its insurance placement needs.
As one of the few comprehensive insurance broking firms in India handling the entire gamut of underwriting, claims, reinsurance and risk management, PINC Insure had a distinct advantage in fulfilling the client’s mandate. We leveraged our deep understanding of the industry to craft a solution that best suited both our client and the insurance company. After all, in an uncertain business environment, it is critical for both the company and the insurer to share a rapport and partner with each other as stakeholders.
PINC Insure assessed the client’s insurance needs and advised the client to obtain optimum coverage. Highlights of our advisory include:
PUTTING TOGETHER THE UNDERWRITING PARAMETERS ON THE BASIS OF ENGAGEMENT CONTRACTS DRAFTED BY IN-HOUSE COUNSEL
Whilst analysing the risk coverage requirements of the client, PINC Insure examined various internal documents of the company. The engagement contracts revealed that in-house counsel had factored in various risk mitigation clauses in order to limit the liability of the organization. These were significant factors that contributed to the grading of risk by the assessing underwriters.
ENABLING THE INSURERS TO COMPREHEND THE SIGNIFICANCE AND IMPACT OF INTERNAL RISK ASSESSMENT PROCESSES AND CONTROLS
Being a global leader in the IT segment, the client adopts the highest standards of corporate governance. However, it was important to communicate and take concurrence with all insurers on the client’s internal risk control systems in order to leverage the company’s strengths and draw a deal on favourable terms. For instance, an independent quality assurance team continually monitored the risk attached to each project on a criticality index and reported to the Board of the company. Such serious internal risk control measures decreased the insurers’ risk exposure significantly and enhanced their confidence in the company. Consequently, this exercise proved to be a valuable negotiation tool, facilitating an indenture with favourable provisions for the organization.
PINC Insure made an in-depth evaluation of its claims history and evaluated whether the risk control processes were designed considering the past learnings.
CAPTURING FAVOURABLE UNDERWRITING CRITERIA
PINC Insure liaised with the in-house legal and delivery teams to gain a better understanding of the statement of works of large ticket accounts. A close scrutiny of these documents revealed that the company could derive benefit from determining and negotiating the deductibles. This finding was of material relevance in obtaining competitive deductibles for the organization.
EVALUATION OF THE CLIENT’S CLAIMS HISTORY
In grading the quality of risk of a company, implementing new learnings is vital. Therefore, while renewing the insurance cover of the company, PINC Insure made an in-depth evaluation of its claims history and evaluated whether the risk control processes were designed considering the past learnings. As a global practice, reinsurers need to assess these factors before undertaking the renewal of covers year-on-year.
PINC Insure’s expertise helped ensure the most comprehensive coverage for the company as well as negotiate advantageous terms that protected the interests of all its stakeholders.