How to reduce business insurance premiums and costs with self-insurance  

It’s easy to feel alone and confused when you’re told your insurance premiums are rising. Unhappy and discouraged, you’re then informed about even more bad news. You’re not alone. 

Are you facing these challenges?

• Increasing premium spend and feel dictated by a hardening insurance market 
• No confidence and control over your cash-flow
• Excesses on claims and potential premium increases, policy limits, conditions and exclusions, particularly after a claim has been made 
• Insurers perceiving your risks as more than what they are 
• Rejected insurance claims as discretion is with the insurer 
• Frustrated that premiums are insurer profits and you are not rewarded for good risk management 
• Expensive risk management initiatives

This can be the reality of traditional insurance, but it doesn’t have to be this way.

Discretionary Trusts solve these challenges

Pioneered and provided through JLT Risk Solutions, you can experience the power of group purchasing by either pooling together risk with others or forming your own facility. Discover benefits far beyond traditional insurance as the JLT Risk Solutions team help you define a new path for protecting your organisation or community.

What are Discretionary Trusts?

Take control over your own insurance. The self-insurance framework for insured members shifts the liability of working losses to an independently administered, ASIC licensed Trust arrangement.

As a member of a Trust, you can enjoy potential premium savings, consistent pricing, the widest possible protection and the return of surplus funds at the end of a good claims year.

How does the framework work?

1. The Trust grows an initial layer of funds to pay for the
   majority of everyday claims.
2. Insurance protects members for large losses above this layer.
3. Funds and membership grow over time.
4. Surplus funds are returned back to members after all claims are paid. 

Backed by both local and global insurance companies for over 30 years

Since 1986, JLT Risk Solutions has managed over 80 arrangements for organisations across 12 different insurance lines. Currently over 800,000 members within 55 Trusts are relying on this growing, trusted model.

What do Discretionary Trusts mean for insurance buyers?

• Exclusive discretion to pay claims which insurers may not 
• Organisations can be rewarded with left over money in a
  good claims year to fund initiatives that further reduce
  costs and claims
• Access innovative insurance cover that others can’t
• Reliable and stable member contributions you can depend on
• Control and security with full disclosure of Trust status

What clients are saying…

"There are significant benefits to be derived from participating in a Mutual Discretionary Fund, as opposed to dealing with a traditional market place insurer: the personal one stop shop approach, so you know who you are dealing with each and every claim, and the built in flexibility where the Trustee is able to realistically apply a level of actual discretion. In recognising that there may be circumstances where the Policy, in reality, does not cover the entire loss, it is possible that if it is in the best interests of the scheme and its members that cover may be extended to provide the best outcome in a particular situation."

Learn more

Contact your Marsh Risk Advisor/Broker or Craig Harms, Head of Alternative Risk Solutions, to connect with the JLT Risk Solutions team.