One of our new clients thought they had a good deal from their casualty insurer when they had provided them with a “roll-over” renewal that--for the first time in nine years--didn't require the company to post additional collateral. They asked Lockton to look deeper, and we found major savings. Lockton helped this major consumer goods manufacturer free up $12 million in collateral. In addition, negotiations led to the return of $1.2 million in cash and reduced premiums by 20 percent while keeping the same retentions, policy limits and coverage. Said the company treasurer, “Lockton has done more in the past month than our other broker did in the past two years.”

The most compelling opportunity was to develop a unique product liability structure to meet the needs of diverse company’s holdings. Prior to Lockton’s involvement, one division was not able to secure product liability coverage due to their product class and associated catastrophe exposures. Other divisions purchased and managed programs independently. Additionally, the company had divisions headquartered in Europe and Asia, but no control of the insurance placements and no overlying excess program.

To address risk management issues, Lockton identified a creative underwriter, engaged the product liability defense counsel in a marketing effort, and developed credible loss data to support a unique product liability risk financing structure. Lockton not only placed coverage when none had existed, we developed a program structure that mirrored the company’s corporate risk profile along with the unique objectives of each subsidiary. Lockton ultimately created a single global casualty program providing consistent coverage across the enterprise.

A client--a major manufacturer of consumer goods—asked Lockton to take a look at their collateral for their casualty insurance programs. At first review, Lockton estimated that the firm had excess collateral of about $5.5 million, based on their expected remaining liabilities. The Lockton team then conducted an in-depth review, identifying collateral overlaps and developing the analytics and a communications strategy to convince the carrier to release the excess collateral. The client had recently engineered a dramatic financial turnaround that was not reflected in their public rating. The client and Lockton shared the positive impact of the company's loss control initiatives and financial rebound with the insurer's underwriting and credit teams. Lockton secured a renewal that reduced collateral by $6.75 million (including the renewal period) and the carrier implemented a Lockton-supported paid loss credit. Fixed costs—including premiums—were slashed by 23 percent while keeping the same retentions, policy limits and coverage. The agreement was completed in just 30 days, three weeks ahead of the renewal deadline. Said the treasurer of the company, "Lockton has done more for us in the past month than our previous broker did in two years."

A major manufacturer had significant earthquake (EQ) exposures at their inventory warehouses as well as a very large Ocean Cargo exposure. Lockton blended the two coverages together to cover the raw materials, inventory and finished product through transit and while at fixed locations. This blending allowed the client to benefit from favorable Marine pricing on its inventory at fixed locations, broad EQ coverage and very low EQ deductibles. It also allowed the property insurer to benefit from having the Marine program act as an underlying "deductible" on inventory.

One of the largest U.S. manufacturers of oil steel tubular products used in the completion of new oil and natural gas-wells. It has roughly 1,000 employees located in its two plants. The client’s incident rate was three times worse than the Bureau of Labor Statistics average. Its claim costs were doubling from one year to the next.

Lockton’s safety and claims cost control consultants performed a survey of the company’s safety and post-injury practices. Lockton’s objective was to determine key drivers pushing the company’s deteriorating workers’ compensation experience. Create a business plan to reverse the trend and implement all recommendations. Many injuries were serious, traumatic events. Even so, management perceived that many employees were filing fraudulent claims. The internal claim coordinator failed to file employees’ reports of injury in a timely manner.

Working together, the Lockton Safety Professional and Claims Cost Control consultant gained management’s commitment to hold supervisors accountable for safety activities and prompt claim reporting. We trained the internal claims coordinator on appropriate injury-management techniques. The safety consultant helped the company realize it really could create a safe culture. The claim coordinator used Lockton’s claim management software to help her make a difference in the outcome of the employees’ injuries. After one year, the company went from reporting 32 percent of its claims within three days of the date of injury to reporting 92 percent within three days. The company saw a 62 percent drop in average cost per claim within one year of implementation.