Not all cost savings achieved through rebroking involve switching insurer. An employer often stays put because its insurer offers to reduce its price once it realises the intermediary has come up with more competitive quotes. Many intermediaries offer the holding insurer the chance to requote once quotes from elsewhere have been received.
In April, AWD Chase de Vere conducted a market review of group life cover on behalf of Geotechnical Instruments (UK), a manufacturer and supplier of biogas and landfill gas portable analysers. It found other players could significantly undercut the existing insurer for the group life scheme, which covers all 60 of the firm’s staff.The intermediary went back to the holding insurer and it agreed to cut its premium by 23%.
Sue Gardner, administration manager at Geotechnical Instruments (UK), says: “We are continually looking at ways to improve what we offer to our employees. By asking AWD Chase de Vere to regularly review our group risk arrangements, we know we will be getting competitive terms, and we have been able to make savings for both the organisation and our employees on life cover and health insurance."
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