When we talk about mid-market firms that we target, we’re speaking about companies with revenues roughly in the $10M to $250M range. These firms are in our sweet spot for a few reasons.
The first is that this segment is underserved when it comes to insurance and risk management.
In my experience, many of these firms have moved from broker to broker based on who has had the lowest price during renewal bidding cycles. The client has been focusing predominately on price like a small business would, and they’re missing opportunities to improve their risk management strategies, and more importantly their coverage program. This opens up opportunities for dangerous gaps in protection.
This is because mid-market decision-makers lack a reliable methodology to know what they have or what they need, they end up with deficient coverage programs. I know this because I have done hundreds of detailed program reviews and 95% of the time these programs are dangerously inadequate, leaving the client exposed to serious problems.
On top of coverage programs being incorrect frequently, most mid-market firms are not getting the support or advice they need to control or reduce risk. I’m not talking about semi-annual visits from an insurer’s loss control inspector. I’m talking about a holistic process to improve a company’s risk infrastructure which will lead to reductions in insurance premiums as well as other elements in the firm’s Total Cost of Risk. The bottom line is that reducing risk equals cost reduction.
Lastly, these firms typically do not have the resources to deploy a full or part-time risk manager to coordinate risk control, safety, compliance and other issues with their organizations. When needed, we can act as a firm’s outsourced risk manager to undertake particular projects or tasks. In the past this has included the creation and implementation of employee safety manuals, creating and coordinating monthly safety meetings, researching and managing specific risk issues, reporting to the board on a firm’s Total Cost of Risk and actions taken to reduce those costs, working with a firm’s other advisors to prepare a company for M & A, or IPO transaction, and more.
The bottom line is that our expertise in working with firms in this market segment goes beyond just procuring insurance – it’s about following a process to identify and assess risks, tailor an insurance program for those risks, and then creating a risk management program to control and minimize risks and costs over the long term. It’s an uncommon approach that yields results and creates long term relationships.
Want to learn more? Contact me, Gordon Coyle for a conversation. Thanks