Integrating risk and insurance strategy
The volatility of commercial insurance premiums makes achieving a cost-efficient insurance strategy more challenging than ever.
Yet insurance remains no less vital to effective risk management. Rising insurance costs reflect rising risks. To mitigate risk and protect your organization without adding significant expenses to your bottom line, you need to address the total cost of risk —deploying resilience and insurance strategies in tandem.
At BDO, we view risk holistically, helping organizations bridge the gaps between risk and insurance management to reduce inefficiencies, manage risk strategically, and drive costs down. We’ll work with you to develop a strategy around risk retention and transfer, informed by analytics that provide insight into historical industry losses, company-specific losses, corporate risk tolerance and insurance cost. With our strong relationships with major insurers and brokerage firms, our team can help you evaluate risk transfer instruments, tailor your insurance policies, and negotiate lower premiums.
Our services include:
- Insurance Program Assessment and Policy Evaluations
- Outsourced Risk Management Support
- Internal Audit & Expert Witness Support
- RMIS Assessments and Implementation
- Captive Feasibility and Utilization Reviews
- Vendor and Third-Party Risk Transfer Assessments
How BDO Can Help
Why Choose BDO’s Insurance Risk Team?
We provide a holistic solution to your insurance program. The components of the holistic insurance risk program are insurance premium (including taxes and fees), retained loss, vendor cost, and insurance function-level cost, better known as the total cost of risk. We use our proprietary tools to help you with our insurance risk, claims, and vendor management offerings to bring you an optimized Total Cost of Risk.
Our offerings are flexible to meet your needs, align with your culture, and stay within your budget. We are committed to helping clients review risk management programs that aim to close the gaps in inefficiency and drive costs down.
The insurance risk function requires the use of multiple vendors to facilitate parts of the process. Insurance brokerage, engineering, loss control, claims administration, actuarial, captive managers, etc. When properly managed and structured, these vendors bring value to the organization and help drive operational efficiency. At times, however, the vendor, fee structure, service offerings, and performance might lack alignment, especially as your organization grows and changes.
At BDO we help clients manage the insurance vendor process with services that include:
- Risk Framework and Contracting Strategy
- Vendor Competitions
- Vendor Performance Evaluations
Captives can play an important role in your overall risk financing strategy, delivering operational and tax efficiencies, and often enhancing top line revenue too. Captives regularly need updating and re-evaluating – as your risks, corporate structure, tax outlook, and regulatory environment change. Designing an effective captive program requires experience and strength across multiple disciplines – insurance program design, actuarial, cash flow analysis, regulatory and tax. BDO professionals have worked with hundreds of clients in the design, formation and implementation of captive programs, understanding how each area interacts and affects the other.
BDO understands the challenges many organizations face when working to manage the insurance risk function while keeping an eye on costs of employee headcount, payroll, and related benefits. Risk and insurance management are specialized functions that require an experienced technician. We often witness clients with minimal risk management staff, creating the possibilities of gaps in coverage and an inefficient total cost of risk. By properly investing in this area, we have found that gap closure and savings in premium, vendor, and claim costs more than justify the expenditure.
At BDO we are here to help you with your insurance risk staffing needs. We provide flexible models to our clients in the areas of:
- Outsourced insurance risk management
- Co-sourced insurance risk management
- Limited engagement staffing
Insurance Risk Services Capabilities
We provide a holistic solution to why, how, and when insurance is used as an efficient risk management tool, with services including:
- Insurance Purchasing Frameworks
- Risk retention and transfer strategies
- Data organization
- Global insurance program design
- Brokerage and insurance company relationship management
- Insurance policy design and structure
- Claims process evaluation and automation
- Vendor performance evaluations
- Vendor competitions
- Vendor KPI development and evaluation
Our professionals work closely in the design, formation, and implementation of captive programs with services including:
- Feasibility and licensing support
- Implementation
- Re-feasibility (utilization Study)
- Post-merger restructuring
- Outsourced insurance risk management
- Limited engagement staffing
- Co-Sourced insurance risk management
Insurance Risk & Recovery Case Studies
Insurance Risk & Recovery Insights
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