With a new merger on the horizon and a federated structure and operation, WM Housing Group approached us to help consolidate and standardise four different insurance contracts. To add a further challenge, their Insurance Manager was also due to leave the company.
With an established track record of providing high-quality housing, procurement and insurance expertise, we engaged with WM Housing Group to deliver service improvements and procure a large-scale insurance contract. Going above and beyond the call of duty, we were able to surpass expectations and the results have been truly remarkable.
In delivering our brief and fulfilling our role as a trusted advisor, we are proud of the results achieved. The headline figures speak for themselves and represent true value for money:
- £3.5M savings over 7 years representing a ROI of 1900% per year
- An additional £100,000 in renewal savings identified and delivered
- Low level losses lowered by 96.79% in just one year through a centralised approach
What we did
Let us introduce Jayne Lombardi. Jayne is Orbit’s Head of Health, Safety and Insurance. Her work has been instrumental in helping WM Housing to achieve its goals of consolidating their insurance arrangements and delivering service improvements and efficiencies. Jayne along with the whole Service Matters team, has gone above and beyond to exceed the initial expectations of the client, supporting WM Housing Group in its mission of creating places where people are proud to live and work.
By becoming the client’s critical friend, Service Matters analysed and tackled their exposures and the root cause of insurance claims. By strategically focusing on claims management and risk mitigation, Jayne was able to identify a roadmap.
Our team in Service Matters worked closely with the customer to review and collate its risk profile, looking at the value of stock and the service offers. They then challenged the business on its risk appetite to identify excess levels.
To gain true insight into its insurance function, our team carried out a claims defensibility study to understand key exposures. Jayne then developed a claims analysis tool that has been used to help landlords understand how their insurance portfolio is performing. This time and money saving tool, is a pre-formulated spreadsheet which can analyse high risk areas and inform strategies to lower claims in those areas – a simple yet innovative concept which gets results.
By challenging and educating WM Housing Group on risk mitigation strategies it successfully increased defensibility and lowered the loss ratio. This made it a more attractive risk to market and enabled it to negotiate significant premium savings.
This work proved invaluable as it was the catalyst to making it a more attractive risk to the insurance market enabling significant premium negotiations.
Our knowledge of the insurance sector also helped us to negotiate a favourable contract that included no CPI or RPI increases – especially valuable in helping WM Housing Group to combat the current rent cuts.
The reach of this project is vast and we are now using this model to work with other providers. Furthermore, we have also delivered significant savings for our parent Orbit Group. Through using this innovative tool Service Matters have saved Orbit Group £1.5m in the last two years.
In their own words…
“Service Matters have helped the group, through OJEU Procurement, to move to a more efficient insurance solution which is consistent across all parts of the group, at the same time delivered a projected contract cost saving of £3.5m over the term. Further claims defensibility and risk mitigation work has positively impacted on our loss ratios which are at an all-time low which is helping to deliver further cost and time efficiencies across the group." Gary Booth, Director of Finance & Treasury, WM Housing Group