The Lumos Partnership

Risk and Insurance Review

Risk and Insurance Review

Unlike many companies that operate in the RIR arena, we have been both seller and buyer; in other words, we have seen both sides of the fence and can bring a 360 degree view, along with knowledge, expertise and impartiality.

Often companies see insurance simply as a cost, not linked to the operation of the business, to be purchased at the minimum price available, on an “as expiring basis” – same cover, same limits and same deductibles. We advocate there is a different approach.

Companies that challenge perceived wisdom in this area, often view insurance as just one of many interconnected approaches to manage their corporate risks. They are challenging the appropriateness and effectiveness of their insurance programme and often ask where the value in this purchase is and can it be quantified?

Considerations can include:

  • Does my insurance purchase represent value for money, what are the other options available?
  • What is the cost (value) of the risks? What are the risks characteristics?
  • What is the correct activity or combination of activities to manage these risks?
  • For my insured risks, are the current insurance programmes sufficient or excessive for my company’s requirements? Am I paying the right level of premium for the insurance cover? Can the insurances be structured differently to reduce the cost?
  • How much do the risks decrease with extra risk management? What are the return profiles of these risk solutions? Are they value for money?
  • How much can my company save by optimising my insurance and risk management activity? What are the uncertainties and how does this compare to my corporate risk appetite?

We apply a wide range of techniques to answer these questions - giving clients all the information needed to make an informed choice.

Whilst transactional insurance brokers are skilled in securing keen prices for given insurance programmes, their single focus around price may be at the expense of the wider corporate risk management activity and may not be the most appropriate or cost effective solution.

Our Managing Partners can help your company and brokers find the most suitable programme structures for your risk profile, culture and wider risk management activities. As well as representing good governance, this approach provides tangible opportunities to maximise value and save money.

Remember we are not insurance brokers - we are not here to sell you insurance – we offer impartial and wholly independent advice.