Insurance is a contract in which an insurance company agrees to pay an amount of money or to compensate the insured party if one or more specified events occur in the future in exchange for payments called premiums.
Business risk insurance, also called as business insurance is a protection to business or company from having financial issue when any interruption, hazard or unforeseen events happened. Insurance does not actually lessen the risks that your company faces. It simply provides coverage and protection against losses incurred as a result of certain risks.
How to save cost from your existing business risk insurance?
Cost can be one of the key decision factors when it comes to purchasing your business risk insurance. Thus, it is crucial to have a professional team or expert to assist you getting the optimum protection with lowest cost possible.
3R Strategy – Save Insurance Cost
At CC Advisory, we are using a business risk insurance planning called 3R Strategy. It is our insurance analysis approach with the objectives of achieving cost saving and optimum insurance protection. This is the best way to reduce existing insurance cost for your company.
3R Strategy Framework
Our Financial Adviser Representatives (FAR) are working together with our competent Centre of Excellence (COE) team to review your existing insurance policies. Then, we source for the right insurance companies that match your company profile and industry to construct the best cost-effective insurance portfolio.
The steps taken during our 3R Strategy analysis are:
1. Review existing policy with historical claim report.
2. Revise existing insured protection, in order to achieve optimized protection
3. Restructure existing insurance in order to achieve 3R objectives either to lower cost or increase coverage.
Continue reading to understand each step in more details.
How does 3R Strategy help your company to save insurance cost?
CC Advisory is an approved Financial Adviser (FA) that working with more than 26 Life and General Insurance companies to provide tailored-made insurance to your needs with planning the objectives of achieving cost saving and optimum insurance protection.
Shop around different insurance company through a Financial Advisor (FA)
With 3R Strategy, CC Advisory able to help client to shop around different insurance company and do a comparative analysis. Did you know that in the year 2019, Bank Negara Malaysia (BNM) have announced de-tariffication rate for fire insurance?
Previously, in a tariffed environment, the insurance premium is regulated or controlled by a fix Fire Tariff Rating and insurance companies have to follow the premium pricing set in this tariff when offering products. As a result, insurance premium will be the same irrespective which company or takaful operator offers the product. However, in a de-tariffed or liberalised environment, fire insurance premiums will be assessed using a risk assessment method. This simply means lower risk business occupation or industry will pay lesser premiums compared to higher risk industry.
Through various insurance partner, we can help you to shop around and even bargain to get the best premium rate your company should be entitled for. If you are still paying premium based on the tariff rating, it is time to make the right move to enjoy more savings and added-value from us!
REVIEW of your existing insurance coverage with historical claim report.
All of your existing insurance policies and any past 3 years claim history must be provided to CC Advisory to achieve portfolio cost saving. Our Centre-of-Excellence, COE Team will look further into the details of current policies to understand the level of protection, coverage and the risk involved. For 3R Strategy, we provide analysis and advises for the following area:
i. Property insurances – fire, fire consequential loss, money, burglary, etc
ii. Liability insurance – Public liability, professional indemnity, etc
iii. Engineering insurance
iv. Marine insurance
v. Group Personal Accident insurance
vi. Group Medical insurance
vii. Group Motor insurance
REVISE existing insured protection, to avoid underinsured or over-insured
Do you know what will happen if you are underinsured? You are in danger of not getting the full claim amount if you are underinsured. With our 3R strategy, this shouldn’t be a worry.
Underinsured refers to an insufficient insurance coverage. Or it could be your claim surpasses the insurance policy’s maximum pay-out. An insurance policy with lower-benefits may seem attractive during the purchasing point because of the lower premium payment. However, if the policy put you in underinsured position, the cost of a claim could greatly outweigh any insurance premium savings. Depending on the asset insured and the extent of the shortfall in insurance, underinsurance can result in a major financial disaster.
It is crucial to examine your insurance policies on a regular basis, at least yearly, to ensure that they adequately cover you in the event of any losses. This review also important to make sure you are not over-insured. There will not be insufficient claim issue if you are over-insured, but why paying more than what you need?
With CC Advisory expertise, we will help to:
- Conduct risk assessments to identify potential business hazards.
- Consider all potential hazards outcomes to determine the required protection level.
- Revise the existing insured protection to ensure adequate coverage and to achieve optimum protection.
RESTRUCTURE or consolidation of insurance policy to increase efficiency
A lapsed policy may happen due to policy management inefficiency i.e. having too many policy under the same insurance classes with different expiring date. This can cause overlooked of the insurance renewal and your policy become lapsed or terminated. If this issue happens, your claim definitely will be rejected by the insurance company.
One of the approaches in 3R Strategy, we will advise client to do any necessary restructuring or consolidation. By restructuring, you might be able to accumulate higher sum insured under the same classes of insurance, which indirectly allowed you to entitle for lower premium rating.
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