A leading chemical manufacturer was being penalized by underwriters for continuing to show a $14 million loss on a business that it had previously divested.
The loss negatively affected the company’s loss profile, which not only made it less attractive to prospective insurers, but also unnecessarily increased its premiums.
As part of its outsourced risk management services, the Risk International team completed a rigorous evaluation process (sometimes known as values collection) to clean up all data being reviewed by the underwriters. Once the divested business segment loss was discovered, it was effectively removed from the books with an asset demonstration that proved the client actually had a clean record with no losses to insure against.
This extensive clean-up effort provided the company with a more favorable underwriting rating that attracted more carriers into a competitive bidding process. As a result, the client saved more than $1 million annually in insurance premiums.