A transportation company wanted to manage out of control workers’ compensation costs. Within 3 years, Lockton developed a unique and proven plan. It created a safety culture that the company's leadership and workers bought into, and lowered claims from $750,000 a year to less than $100,000 a year.

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.

Lockton serves several large food processing firms. Processors are facing an extraordinary profit squeeze from rising grain and raw material prices and intense price competition.

A client asked Lockton to review its product recall and contamination insurance program which was handled by another broker. The company’s wanted to maintain price stability.

So Lockton’s global team—with members based in London, Kansas City and Atlanta—conducted an audit of the existing program, held intensive discussions with insurance carriers worldwide and developed a unique approach.

Our client generated big benefits from Lockton's work:

     • Despite the company’s revenue growth, the program was secured with a 14% price
      reduction (“apples to apples” comparison)

     • Secured an program alternative that removed the potential cost of a multi-million dollar
      “large loss surcharge” following a recall

     • Identified and developed new market capacity for product recall to reduce reliance
      on a single carrier

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.”