In more than 60% of all cases, company insurance does not (completely) match the business and risk profile of a company. Many risks are unjustified, inadequate, and insured on a far too conventional basis. In addition, the current premium rates are often dated. The above results in so-called premium leakage. In practice, this is more than 35%!
What is premium leakage?
Premium leakage occurs when a risk and insurance programme is insufficiently tailored to your risk profile and risk perception. And where the existing insurance solutions are ‘outdated’ (premium and coverage). Simply put, premium leakage relates to the part of the premiums you pay for that does not create any obligation for the insurer. For example:
Premiums, connected to insurances that will not pay, such as:
1. A company damage insurance even though you do not suffer any revenue loss due to fire damage;
2. Faulty ascriptions, leaving the respective entity being unentitled to receiving claims;
3. Incorrect capacity description on the liability insurance, resulting in a potential claim not being covered.
Over-insurance / double insurance:
1. Insured amounts that are too high;
2. Inadequate insurance structure;
3. Coverage for the same thing in multiple policies;
4. Interests insured by multiple stakeholders.
Premiums linked to a wrongly structured insurance
1. Unknown/unwanted exclusion clauses which lead to rejection of a potential claim;
2. Outdated insurance solutions;
3. There are better and more appropriate solutions which are unknown to you.
Premiums you pay for insurances, which you consider unnecessary after better explanation
1. Not everything has to be insured, you must first be properly aware of the risk;
2. It turns out you are prepared to take a higher deductible.
Premium level is not competitive
1. Purchasing insurance premiums is something of an art. Too often we see outdated premium levels, which is a waste;
2. Combination of insurance solutions often leads to savings;
3. Branche Benefits purchases a lot of coverage collectively, which results in a significant collective discount.
Branche Benefits has performed more than a thousand risk and insurance analyses for the most diverse types of businesses over the past 12.5 years. In addition, the phenomenon of premium leakage was always taken into account. Based on this, it has developed a unique assessment model. Because both your time and ours is valuable, we have defined 11 questions. The answers to these provide a reliable indication of your premium leakage. On the one hand, this will map the extent to which your insurance package will deliver in relation to your expectations in case of damage. On the other hand, the cash value of your premium leakage is calculated.
If you want to know exactly where you stand, do not hesitate to contact us. We are happy to make an appointment for a free risk and insurance analysis.