INSURANCE REVIEW PROGRAMME
A Statewide Mutual Board Initiative
Following the success of the Business Continuity and Integrity Management Programmes, the Statewide Mutual Board is pleased to announce a brand new insurance review initiative being offered to our members at no cost.
The objective of this programme is to ensure that member councils have accurately quantified their insurable risks and that they are adequately transferred to their insurance programme.
The project will require Council to make available key resources for a maximum of two half day workshops as well as provision of key insurance and financial information.
This project is split into two key parts, the first being an Insurable Risk Profiling review and the second part being a Business Interruption review.
For more information please contact your Account Manager.
Part 1 – Insurable Risk Profiling Review
- Evaluate whether the insurance programme that Council currently has in place adequately addresses the organisation’s Maximum Foreseeable Loss (MFL) event risk exposures (in each of the insurance portfolio components); and
- Findings of the review will contribute to the design of the insurance programme by providing information on the major MFL risks the organisation may be exposed to, and the insured limits of cover that may be required.
Insurable Risk Profiling Process:
Information Gathering and Preparation
JLT will review existing data and information regarding the organisation’s insurable risks (e.g. from renewal questionnaires, surveys, risk register, claims data etc.), in addition to any other relevant information that may be obtained or provided.
Insurable Risk Profiling & Validation Workshop
A Workshop (4 to 5 Hours duration) will be facilitated by JLT with management and selected operational staff to obtain specific ‘worst case scenario’ event and risk data. This data will be provided by you, based on your knowledge and experience with the organisation’s operational activities.
From this information, JLT will populate the Insurable Risk Profiling tool with both, specific risks (i.e. identified from specific documentation and the workshop data provided) and generic risks (risks identified from JLT’s experience that could be relevant to the organisation). These insurable risks will be placed into three insurance categories – Assets & Business Interruption, Liabilities and People.
JLT will submit an interim report and findings for the organisation to verify the accuracy of the findings, to agree with the insured values (limits and sub-limits) as well as any preliminary insurance ‘gaps’ that may have been identified by JLT.
Insurance ‘GAP’ Analysis
JLT will carry out an insurance ‘GAP’ analysis whereby the current insurance programme will be evaluated against the insured risks identified and any ‘gaps’ will be identified and reported.
The final report will provide Council with an overview of the organisation’s insurable risks, a good understanding of the suitability of its current insurance programme including any identified gaps. This will provide assurance to the Council that it has done all that is required of it to ensure that its interests are sufficiently insured and where gaps may have been identified, it would be open for Council to determine if they wish to take out additional insurance coverage.
Part 2 – Business Interruption Review
To ensure Council’s business interruption risks are identified, quantified and understand the mitigation steps when a loss occurs. This review will allow us to:
- Identify revenue generating operations within Council;
- To confirm or adjust the cover to ensure these activities align with the Mutual Policy Structure, Policy Values (including sub limits, like Prevention of Access) and Policy Wording;
- In addition the review will provide a financial model to allow Council to declare future limits and sub limits correctly.
Business Interruption Review Process:
The meetings need to address the following points on key revenue generation assets being – what could cause the asset to be affected; the impact on the income flow; how long could the loss period be (asset reinstatement and getting back customers); the mitigation strategies; and how you could use the policy to mitigate losses.
The key people that we would hold the discussions with (approx. 1 hour meetings) are the General Manager and the Manager/s of Council’s key assets (e.g. Waste Management Manager).
- Current insurance policy and schedule (JLT will obtain from your broker).
- The past twelve month income and expense report for the Council.
- Identification with the past twelve month income and expenses report of income producing assets and associated expenses in operating these assets.
- Identification of key customers and key suppliers which could affect the income generation.
A report to both Council and the JLT Account Manager will be presented highlighting key findings from the review.
Adjustments to Cover
Based on the report findings and in consultation with Council and your Account Manager, we will adjust the current cover if gaps exist.