Problem-Solution-Result

Unfortunately, many clients come to us when the problem has already incurred and we have very little instruments to influence the situation. We are convinced that the only efficient way to reduce the risk of having problems with your insurance is a quality and professional approach from the very beginning, well before the insurance contract is signed. In this section we would like to demonstrate few practical examples of how our clients can benefit from working with Consoris.

	How to optimize mechanizmes of insurance in Ukraine
Problem	A transport company, after receiving a following 15% premium increase notice from their current insurer, has requested our Company to look into a possibility to keep their motor fleet insurance costs at existing level.
Solution	The renewal proposal from existing client's insurer was accompanied by an overall market overview demonstrating that all leading Ukrainian insurers have increased their motor rates by 20% comparing to previous year. It was quite obvious that if a significant reduction is possible, then this would be an offer from an insurer which is not one of the top 10 companies. Downgraded insurer was not acceptable, therefore we had to take a deeper look into existing deductible structure and loss history trying to find a way to optimize risk transfer. It appeared that current deductible was fairly low — USD 150. At the same time all reported losses were well in excess USD 600. Also, the loss history of consequent 3 years demonstrated that number of accidents every year including the amount of loss is quite the same. This means that the client was knowingly paying a significantly higher premium, just for the luxury of having a low policy deductible which the client is not able to take advantage of. Having a policy with $150 deductible instead of $500 deductible, over a period of 3 years, given the client a "luxury"  to receive a compensation 5 times. This given the company $1750 more compensation then it could receive having 500USD deductible policy. At the same time, annual insurance policy with the higher deductible level was $2500 less expensive. In other words client in three years time client paid $7500 more premium for  the sake of $1750 extra indemnity. This is a hardly a good deal. At the same time $2500 saving, represents nearly 20% reduction on company's annual premium.
Result	Taking into account the loss statistics, the renewal conditions where requested with a higher deductible schedule. Renewal rate was not only offered at expiry terms but even 5% lower. Sometimes, Insurers motivate clients to buy low deductible policies, however we are not sure that this is always a good deal for a client.

Precedents similar to cases referred to above became an impact made us to introduce our specialized firm audit service. We believe that this would help owners or managers of various organizations to assess the quality of insurance cover arranged without an assistance of qualified professional insurance consultants.