Risk Consulting and Additional Services

Insurex partners with many end suppliers to deliver integrated and effective risk solutions.

Some of these are as follows.

ENTERPRISE RISK CONSULTING SERVICES “ERCS” which  can detect, and effectively track and manage enterprise,  strategic and operational risks.  This is a paid service individually tailored and costed. Ideally you will be a larger business  with perhaps over 100 employees and or assets exceeding $50M and turnover in excess of $70M. Smaller one off offerings will be considered.

These practical solutions assist our clients understand risks in greater depth and detail, through guidance and coaching to identify key business risks.

ERCS will provide insight and capacity for continuous improvement, growth  and business continuity.

Why use ERCS?

Without professional identification and management of risk, risk and insurance strategies are at best potluck. ERCS is fundamental to a sound business risk management approach. It is the skeleton within which critical procedures rare inculcated to meet corporate governance standards under corporations law   and many other statutes .  It can provide comfort and security for directors that appropriate advice and actions has been taken, a key platform for the defence in proceedings against directors and their entities.

It empowers businesses to make impactful and beneficial data driven decisions.  Without it, business management are vulnerable to missed growth opportunities and costly retroactive risk management.

ERCS will drive conversations which lead strategic and operational decisions that secure profitable growth to achieved and designed outcomes, not just a right place right time fluke.

RISK PROFILING SERVICES  “RPS”

RPS provides free innovative risk analysis based upon industry comparisons and your own business risk profile.

Classical risk profiling is provided for most classes of insurance and how your business might measure up.

Additionally, this analysis can also identify natural disaster exposures such as;

Earthquake, Bushfire/wildfire, Coastal Flood, Hail, Landslide, Lightning, Tornado, Wind Speed/Cyclone, River Flood, Storm Surge, Tsunami, Volcano

This informative, facts-based tool aims at enhancing risk driven conversations by illuminating what risk are possibly unknown to you.

Understanding what risk your business is exposed to is not a simply as it may seem. Simply put, you don’t know what you don’t know.

Building best practice commences with the identification of exposures, so the risks generated by those exposures are identified and treated.

Then benchmarking to peers is a realistic focal point for developing your Business Continuity Plan.

This is a free service

PROPERTY AND LIABILITY RISK SURVEY SERVICES “PLR”

In partnership with several industry specialists we can provide property survey and risk consulting expertise.

Just as you might detail car before trying to sell, you will want insurers to see your business at its best. If you want to secure better insurance programs and pricing,  then presenting your business for insurers tenders with the quality technical reports and surveys is the language underwriters speak.  Set your business apart from the mob and get the underwriters attention.

Obtaining high quality  risk surveys and similar professional reports prior to seeking insurer quotations, will enable Insurex  to identify potential adverse insurer risk attitudes that might otherwise causes  significant premium increases or in extreme cases, refusal to insure.

Underwriters have limited time and limited capital on their  balance sheets to deploy. If two risks are identical, then common sense suggests the in underwriter will gravitate towards business with a fully detailed risk presentation together with survey and analysis of claim histories.

It’s no secret insurers are fussier than ever as insurance markets continue to deteriorate.

Let us show you how this can save significant costs for a very small fee.

PROPERTY VALUATION SERVICES “PVE” 

In partnership with Andrew Nock Valuers we can provide property valuation services for insurance purposes for property.

Valuations may be provided for Buildings, Site Improvements, Plant, Equipment, Mobile Plant, Contents, Fine Arts, and Antiques. These insurance valuations cover you for three years, with free desk top updates for years 2 and 3.

Our clients enjoy discounted rates for special risks.

Unless you have an independent insurance valuation conducted within the last three years, you have no evidence that your current sums insured are correct. Commercial policies contain penalty provisions for under insurance. Unless you have particular skills in estimating construction and building costs, in accordance with the basis of valuation stipulated in the insurance policy, it is highly likely you will not have correctly assessed the value to rebuild or replace, remediate site damage, removal of debris, allow for new constructions codes and or council regulations.

These penalties may be exacerbated when claims are delayed perhaps due to  the insurer not quickly admit liability, delays in loss assessments or potentialy when natural  disasters occur and there are shortages of materials  occur and or reconstruction.

You will save far more than the cost of your valuation.

BUSINESS INCOME SUMS INSURED SERVICE “BISIS”

In partnership with MSM Loss Management we can provide free sum insured estimation for your business income insurance. Whether this is gross profits or turnover output based calculations and or even loss of rent, it vital to get these estimates right to avoid being penalised at the time of claims.

Values are calculated in accordance with the policy requirements. These calculations are quite different to normal accounting calculations.

They are more complex because the longer the indemnity period (the period during which the policy pays for lost income and increased costs), must be projected for the trend of the business and up to the end of that period which may be 3 years or more.

We can provide comprehensive sum estimates, a vital start to getting your claim paid.

Other Key services 

  • Our service in tandem with MSM extended to the following.
  • Claim Preparation and submission to ensure you achieve your maximum entitlements
  • In many instances this service can be free of charge depending on the structure of your insurance
  • Actual Loss Management including timely advice allowing informed decisions on critical issues such as recovery actions and payroll decisions
  • Litigation Support Services and Forensic Accounting
  • Pre-Loss Advisory documentation
  • Projects and Construction
  • Fraud & Financial Crimes
  • Third Party Claims Administration
  • Compliance and Support Services
  • Training and Risk Workshops

DISCRETIONAL MUTUAL FUND “DMF”

We provide access and general advice in DMF through key strategic partners who are fully licenced in Miscellaneous Financial Products.

What is a Discretionary Mutual Fund  ?

Each member contributes an annual contribution to the fund and, in return, the fund provides a statement of cover and assumes liability for their risks. The annual payments create the aggregate, out of which claims and operating expenses are paid and to ensure member liability is capped, DMF’s buy excess of loss cover from reinsurance companies.

Why use a DMF?

The term ‘discretionary’ is used because the insurer (through a board of directors) uses its discretion to decide whether or not any claims made will be paid. The DMF also decides how any surplus money that hasn’t been paid out in claims will be used. It could be reinvested for the benefit of members, such as in programs to improve risk management, or used to lower the future annual payments each member makes to the fund.

Typically, the more members a DMF has, and the more diverse they are, the more successful it is, as the risks the DMF assumes can be spread more broadly. A DMF is a long-term proposition – to access the full benefits of membership, a term of five to 10 years is recommended.

Benefits of a discretionary mutual fund:

A DMF may help some industries facing rising insurance costs manage their costs if member annual payments are set lower than insurance premiums.

Because it isn’t insurance, DMFs attract lower regulatory charges.

A DMF can typically provide more extensive benefits and industry-specific coverage due to its specialised nature.

By reinvesting surplus funds from the DMF into risk management initiatives, industries can improve their collective risk and reduce the incidence of losses.

Because a DMF is industry-owned and based on the principle of mutuality, it’s subject to a lower tax burden.

How does a discretionary mutual fund differ to traditional insurance?

Under a traditional insurance arrangement, an insurance company agrees to take on the risks of policyholders in exchange for the payment of an insurance premium and commits to provide a payout in the event of a valid claim being made.

Insurance companies invest the money received from insurance premiums, with any financial returns distributed to shareholders, or kept for their benefit. If a policyholder makes a claim, it’s likely their insurance premium will increase the following year, and sometimes insurance premiums increase even if a policyholder hasn’t made a claim.

Contact us for more information and for a direct referral to our AFSL licenced partners who are expressly authorised to issue these products.

CAPTIVE INSURANCE COMPANY  “CIC”

Similar to DMF arranged trusts, specialised insurers such as captives require arrangements and  specialised ASIC licencing approval.

Insurex can provide access by way of referral for  these specialised corporate structures. These unique products are special purpose in nature and require lengthy planning and consideration.   Miscellaneous Financial Products such as DMF’s, Industry Funds, captives, rent a captive and other exotic risk treatments  are highly specialised complex alternate risk transfer systems.

A captive insurance company is an insurance company that is formed and solely owned by a non-insurance company. The formed insurance company functions as a direct insurer or reinsurer for the parent company and its subsidiaries.

Captives reduce total risk cost by increasing the company’s financial control and management of risks, decreasing the cost of insurance premiums. Captives are often fundamental for a company’s approach to international insurance programs. However, captives can also cover domestic and local risk, sometimes used strictly in a domestic structure.

Ultimately, captives can take a variety of forms, covering a range of risks tailored to the specific objectives and needs of the parent company.

Captives are legitimate and legally licenced insurance or reinsurance companies

The scope of coverage for a captive is commonly limited to the risks of the parent company and its subsidiaries.

Therefore, the captives comply with the regulations established by the location in which the captive is based. These regulations are typically less rigorous for companies covering risks for third parties.

A captive can assume third-party risks in specific situations and domiciles. However, these situations typically have increased compliance requirements and regulations in domiciled locations.

Benefits of a captive

  • Setting up a captive requires the following key requirements:
  • Active and comprehensive risk management
  • Choosing a domicile that provides a stable legal and political environment
  • Stable loss experience
  • Sufficient premium volume
  • Sufficient financial resources to (re)capitalise the captive
  • Willingness to assume own risk

Disclaimer:

None of the above purports to be anything other than general information concerning alternate risk transfer or enterprise risk provisioning. It is not risk advice.

Before you act on this information you must refer to appropriate legal and financial advice. Insurex does not accept liability for any action or decision made or not made by you in consequence of the above.

Insurex does not hold nor purport to hold licencing approved by ASIC in Miscellaneous Financial Products, saving where no specific licencing requirement exists.