Delivering savings and stability for a bus and coach operator

DIFFICULT. DONE WELL.

Could we help you win new clients?

We understand the hurdles of winning a new client as a retail broker, particularly with challenging classes and industries. Read our case study to find out how our Motor Fleet team secured cover for a bus and coach operator while saving a large sum on their premium.

The risk

Our client, a bus and coach operator, was nearing the renewal of their long-term insurance agreement when they encountered a challenging situation. Due to an unfavourable loss ratio, they were on track to face a significant rate increase of 7.5% on their insurance premiums. This hike threatened to substantially elevate their operational costs, placing a strain on their financial resources. The client was exploring financing options to manage these rising costs, with rates from traditional providers estimated at around 6%. With the transportation industry being as competitive and tightly regulated as it is, any increase in costs could have profound effects on the client's ability to remain agile and profitable.

The approach

At Miles Smith, we understand that clients operating in high-risk industries, like bus and coach services, require more than just standard insurance coverage; they need a partner that can deliver bespoke solutions tailored to their specific needs. Leveraging our extensive experience in providing insurance solutions for motor fleets, we took a proactive approach to assess and mitigate the risks our client was facing.

We began by studying the claims history that had been reported over the past year. Our team of experts meticulously reviewed each claim, looking for any anomalies or areas where costs might have been overstated or could be adjusted. During this investigation, we identified a key discrepancy in one of the claims. It became apparent that certain costs were set to reduce, which, once accounted for, would lower the overall loss ratio. Recognising that a more accurate loss ratio could significantly influence the renewal terms, we set about renegotiating the terms with the insurer.

Understanding that financing could also be a burden, we didn't stop at claims analysis. We examined the potential financing options available to the client. While typical rates from third-party finance providers were around 6%, we sought to offer a more cost-effective solution. Our goal was to not only mitigate the impending rate increase but also to secure financing that aligned more closely with the client’s budgetary constraints.

The result

Through our rigorous analysis and negotiation efforts, we successfully reduced the projected rate increase from 7.5% to just 5%, saving the client 2.5% on their insurance premium. This reduction was achieved by presenting the insurer with our findings on the claims discrepancy, thereby lowering the overall loss ratio.

In addition to lowering the rate increase, we offered an in-house financing solution with an interest rate of just 2.5%, far below the 6% available through traditional providers. This financing option provided the client with an additional 3.5% saving on their premium, allowing them to allocate more of their budget towards operational improvements, rather than rising insurance costs.

Recognising the importance of long-term risk management, we also proposed a comprehensive risk management survey. This survey was designed to identify areas where the client could implement best practices and safety measures that would not only reduce future claims, but also qualify them for a risk management bursary. This bursary, contingent on their compliance with the survey recommendations, would further reduce their overall insurance costs, creating a sustainable cost-saving strategy moving forward.

By maintaining open communication and providing tailored, client-centric solutions, we reinforced the trust between our client, the insurer and our broker partner. In an environment where insurance rates are continually rising, we provided stability and confidence, ensuring our client could continue operating smoothly without the burden of excessive costs.

This case highlights our commitment to excellence in serving the motor fleet industry. With our deep understanding of the unique challenges faced by bus and coach operators, combined with our unrivalled expertise in the London Market, we delivered a solution that effectively addressed the client's needs.

Do you have a new client you are trying to win in one of our specialist areas? Contact a member of our Broker Relationship Management team.

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