idRisk Advisory Limited is authorised and regulated by the Financial Conduct Authority, number 312495. Copyright 2011. All rights reserved
International Oil Company
This review was related to the Broker Service but also touched on the existing programme that the client
had in place. The client felt that it was spending a lot of money on its insurance and was not convinced
that the programme was structured in the best way. In addition there were two separate brokers placing
various parts of the programme which added to costs.
What We Did
idRisk was able to co-ordinate a risk review of the client’s main locations and then relate these back to the
existing programme. This showed that the client’s suspicions were well founded and that in most loss
scenarios the programme would not respond properly. In addition, there was a structural flaw in the
programme which would have resulted in Average being imposed to a significant degree.
The programme is now being restructured and the two brokers are being encouraged to work more closely
together, both from a technical and market negotiating point of view.
Highlands and Islands Enterprise (HIE)
HIE (www.hie.co.uk) is the Enterprise Agency for the Highlands and Islands of Scotland, which covers more
than half the area of Scotland.
As HIE approached the renewal of their long term service agreement with insurance brokers Marsh, they
wished to take the opportunity to competitively test the market for broking services. Given the unique nature of
HIE's activities and the need for independence and transparency, HIE wanted some external assistance with
the review, working within their well developed procurement processes and alongside their procurement
division throughout the process.
Our input was over two phases. The first phase involved reviewing the existing service arrangements and
responsibilities and recommending a number of improvements and refinements. The second phase was a
competitive review partly based on the outputs of the first phase and also reflecting any further enhancements
that were required. Working with HIE's procurement team, and under the OJEU rules, we helped develop some
of the industry specific Pre-Qualification Questions and significant sections of the ITT document. We also
helped with a Broker Forum, where all the competing brokers had an opportunity to meet HIE and ask
questions. Once the tender responses had been assessed we provided guidance on the individual broker
presentations. Finally, using our unique fee calculator and service agreement, we helped the HIE insurance
team with the final fee negotiations, service brief and KPIs for the service agreement going forward.
HIE were able to independently test the broker services that they purchase and now have a clearer service
agreement at an industry benchmarked and fair fee level. The review did not materially impact on the day to
day workload of the HIE's insurance team and all the stakeholders in the insurance process of HIE now have
clearer and well defined roles.
The Client's View
"All the way throughout this exercise we felt comfortable that idRisk's team were by our side and that we
would make the right decision with their help. As a result we have appointed brokers with a clear service
agreement and a fair level of remuneration. I am happy to recommend idRisk's team to any organisation who
are considering going through a similar process" Keith Bryers, Head of Property, Highland and Islands
FTSE 100 Fund Manager
The client had radically changed its business model and risk profile. There was a desire to drive its own
insurance needs and dictate terms to the market. The client required a broker who could demonstrate a
comprehensive understanding of the ‘new’ business. The client was also concerned with quality of service and
What We Did
Defined with client senior management team their needs and expectations. Designed, drafted, managed,
resourced and successfully delivered a broker performance and procurement project. Drafted and issued the
Request to Tender (RTT), then collated and analysed the respective responses. Interviewed brokers and their
referees. Provided both quantitative and narrative reports to senior management to support the selection and
Appointment of broker that clearly demonstrated a comprehensive understanding of the client's business and
risk profile. Greater control over the design of the insurance and risk financing programme. Greater influence
on the insurance market. Independent and objective review of potential brokers – fully auditable. Quantitative
and narrative report that supports the discharge of stewardship and governance responsibilities. Quality of
service. Timely and efficient delivery of process. Adequate resourcing and project management to permit
senior management to focus on their day to day responsibilities.
Cost savings of £750,000 over 3 years.
Sports Governing Body
It was over 6 years since the last broker review and the incumbent had been in situ for many years. There was
a desire to review the market. A benchmark of the incumbent broker’s services against client’s expectations
was needed. The client felt that their needs were changing and that they needed to see what was available in
What We Did
Designed, resourced, managed and successfully delivered idRisk Broker Performance Assessment process.
Drafted tender, agreed assessment criteria with client senior management and managed the process over a
tight timescale on behalf of the client. Interviewed brokers and their referees. Provided both quantitative and
narrative reports to senior management to support the selection and appointment process.
Successfully appointed a new broker to meet specific service needs of client. The brokers are now acting in a
consulting and strategic advisor capacity as well as putting in place an insurance programme. There is now a
good broker relationship and an innovative programme has been designed and structured with streamlined
co-ordination and administration of programme.
The following case studies represent a small sample of the types of work we have carried out in recent years.
Click here to see more previous clients.