Concertiv Case Study: Business Insurance

Global Investment Bank Unlocks $216K in Savings and Better Contract Terms by Re-Bidding Business Insurance with Concertiv

Key Takeaways

• A leading global investment banking firm sought a proactive partner with deep industry expertise to handle their business insurance procurement.
• Impressed by Concertiv’s holistic approach and demonstrated expertise in sourcing insurance specifically for the investment bank industry, the global investment bank selected Concertiv to streamline their broker selection process.
• Concertiv's meticulous RFP process resulted in significant cost savings, including $68K in brokerage fee savings and $148K in annual insurance premium savings, demonstrating the value of specialized procurement expertise in optimizing vendor relationships while minimizing operational disruptions.

One of the now-leading names in global investment banking had grown over the past two decades to become a trusted name in M&A and debt advisory services, with over 20 offices in 15 global markets.

The firm credits their success to deep industry relationships, unique insights, focused execution, and a team personally invested in their client’s success. As a result, client relationships can often last for decades.

That same relationship focus extends into their vendor suite, where they seek partners who mirror their hands-on approach to account management and intense commitment to the success of their clients.

When it came time to review and re-launch the RFP for their suite of business insurance (including Errors and Omissions (E&O), Directors and Officers (D&O), Workers' Compensation, Property & Casualty, and other insurance types), the firm knew it was time to find a more proactive partner to cover its 800 employees.

Facing a complex landscape of insurance providers and coverage options and lacking industry intelligence and opaque industry pricing, they sought an expert partner with deep industry knowledge to help them find an insurance broker aligned with their service needs and the best possible pricing.

In looking for a new broker the firm faced two challenges that demanded a unique new strategy and skills to execute. It had a relatively short time table to source and procure a new insurance broker, procure, and renew existing insurance programs after a major claim.  Secondly, it was looking for a broker that had more alignment with the firm's total risk appetite.

The Decision to Find a New Insurance Vendor

It's not uncommon for a firm to revisit its insurance vendor portfolio. In fact, many investment banks organize a business insurance broker RFP (Request for Proposal) every three to four years to ensure they are keeping up with the latest pricing, product offering and vendor changes. Still, deciding to change insurance brokers after several years can be an unsettling process, particularly when the motivation to move is due to poor service levels and coverage levels that did not match the firm’s risk tolerance.

Searching for a new insurance vendor would be no small feat; the firm needed its insurance procurement function to support an international audience, along with the various complications that come with global support and contract negotiations.

Acknowledging the complexity of their requirements, the investment bank went in search of a partner to help them navigate the complex insurance vendor landscape. Ultimately, they decided to work with Concertiv as their commitment to integrity, high-quality client service, and deep industry expertise best aligned with the client’s own relationship management strategies.

Additionally, they noted that:

• Concertiv showcased true category expertise specific to investment banking business insurance, rather than just generalized procurement experience.
• The holistic approach and team skillset Concertiv displayed eliminated any anxiety they had about making a vendor change with less than ninety (90) days prior to their insurance programs expiration.
• They were looking for a partner with deep market knowledge and relationships that meant the team could step into any insurance procurement or claims situation, either as an advisor or as an insurance broker, with the license to address any issues that might arise.

Launching into the partnership, Concertiv began by identifying and interviewing key stakeholders to determine the firm's project needs and strategic priorities to ensure the broker selection process was as seamless and accurate as possible. This included generating a full picture of the firm’s risk data to share with potential brokers.

Concertiv utilized its purpose-built procurement platform to quickly centralize and analyze the client's confidential insurance risk data ensuring they could 1) effectively manage and secure all data access, and 2) quickly provide a useful data format to the selected broker, ultimately streamlining selection timelines and data distribution to insurers.

From there, the Concertiv team developed a comprehensive RFP, incorporating detailed coverage specifications, key brokerage performance indicators, coverage procurement requirements, and insurance brokerage service agreement guarantees.

Leveraging their strong reputation and understanding of the best-in-class providers, Concertiv organized a vetting and RFP process resulting in the submissions from 11 insurance brokers, all of whom specialized in serving the unique insurance needs of investment banks. Potential insurance brokers were then vetted against company history, expertise, staffing availability, service approach and methodology, ability to execute the renewal, and price – with negotiations back and forth among all vendors to ensure the client team could choose from the best possible options.

The RFP communication plan Concertiv put in place enabled the functional RFP participants (the CFO, General Counsel, Controller, and Compliance Officer) to quickly inform all stakeholders of the selection without distracting from the administration of the existing insurance programs.

Having organized and managed a competitive process for the firm's business, the Concertiv team shortlisted two insurance brokers best aligned with the company’s strategy, service, and pricing goals. Working with the executive team along the way, the client ultimately selected one of the recommended vendors and moved forward with a guaranteed insurance premium and optimized service fee and commitments –all with minimal team distraction and zero disruption to their total insurance coverage.

Hundreds of Thousands Saved – Plus Better Service, Fewer Operational Headaches, and Decreased Risk

The client realized $68K in brokerage fee savings and $148K savings in annual insurance premiums; this was in line with Concertiv’s average client savings of 10-20%.

Their frictionless RFP process enabled the client to focus on its business, saving the firm hundreds of hours, preventing business insurance costs from expanding beyond budgets, and reducing the client’s overall total cost of risk through Concertiv’s tried-and-true insurance brokerage RFP processes. The Concertiv process enabled a seamless transition from one insurance broker to another, facilitating the implementation.

Interested in learning more about procurement-as-a-service for your firm?  

Learn how leading firms are partnering with Concertiv to reduce spend, minimize risk, and save time across key spend categories.