Challenge

In a hard property insurance market, premium rate increases are the norm. However, cost savings can sometimes be achieved with some investigation and risk mitigation actions. Hylant went to work on behalf of this $900 million manufacturer to see what was possible.

Solution

While conducting an account review with the client’s property underwriter, Hylant discovered that the insurer was purchasing facultative reinsurance for a single facility and passing that cost on to the manufacturer. Insurers purchase this reinsurance when they deem a risk especially serious or potentially costly.

A Hylant property risk specialist then reviewed the insurer’s reports, analyzed the recommendations, and presented options to the client for addressing the underwriter’s concerns. Based on the advisor’s guidance, the client lowered the height of storage units, relocated certain problematic stored materials and upgraded the facility’s sprinkler system.

The process took two years to complete. During that time, Hylant directed communications among engineers, the underwriter, the manufacturing plant manager and the plant engineer to ensure everyone agreed about what needed to be done and how. This helped make sure that the projects would achieve the targeted loss control goals.

Once the changes were made, the insurer canceled the reinsurance and issued a prorated refund to the manufacturer. By implementing the recommendations effectively, the company is now saving $50K annually.

Hylant continues to support the manufacturer’s property loss control program, providing technical code guidance, helping to prioritize improvement recommendations, and advocating on its behalf when compliance and insurance-related issues arise.