Getting cover for an unusual energy start-up in risk averse insurance market conditions calls for fresh ideas, so a multi-disciplinary Gallagher team pooled their creative abilities to pave the way to a successful outcome. Here’s how Zoom technology contributed to overcoming the capacity challenge and obtaining more competitive pricing.
The business seeking renewal of insurance cover was a green energy company that extracts or safely disperses gas from landfill sites and also operates above ground solar farms.
Responding to the prevailing caution in the current market the company’s incumbent insurer wanted to reduce the capacity of coverage offered, both for physical risks and liability exposures.
“Most insurers won’t give any consideration to insuring landfill sites, due to the perceived risks," says Gallagher Adelaide Team Leader Bronia Henty-Smith.
This insurer’s underwriter had never met the client and had limited understanding of the controls in place in the operation to obviate the fire risks presented by landfill.
Leveraging virtual technology to collect valuable information
After reviewing the existing insurance program Gallagher directed a comprehensive risk information session with the company’s engineer present to explain the technicalities of their risk management systems, in order to present a detailed risk profile to potential insurers via online Zoom meetings.
“If an insurer doesn’t confidently understand our client’s business they will either decline to quote or provide unrealistic pricing to remove themselves from the race,” Henty-Smith says.
As a result of the collaborative and multi insurer engagement process led by Gallagher, one insurer offered to split 50% of the property cover with the incumbent, and to take on all of the required liability cover, meeting the pre-existing shortfall in capacity of cover. Gallagher was also able to obtain more competitive pricing on some ancillary risks from other insurers.
“Without comprehensive knowledge of a client’s business it is impossible to sell it as a potential customer to an insurer,” says Henty-Smith. “The Zoom information session and follow-up provided a detailed view of the company’s operations and risk management protocols.”
Find out more about insuring unusual or hard to place risks
If your business does things a little differently talk to one of our insurance experts about getting cover personalised to your operation’s requirements.
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