As organisations navigate through a pandemic, the material change to their operations and risk profile could entitle them to certain cost saving opportunities. The following are examples of potential ways to achieve savings across your business.

Insurance rebates

Claim insured losses

Reduce insurance premiums

Trade credit

ACC and Wellbeing Support Services

Premium funding

Insurance rebates

Companies that face revenue changes may qualify for rebates on their insurance. This is particularly apparent with business interruption insurances. Our Forensic Accounting team can conduct a Declared Values Review for businesses in light of changing revenue forecasts, which can help identify whether a premium rebate is qualified.

There is also an opportunity to update insurers on revenue changes to identify rebates in other insurances, such as liability. These rebates can unlock cash flow to businesses quickly that can be invested elsewhere.

For more information, or to arrange a conversation with our Forensic Accounting team, please contact your broker.

Claim insured losses

There is an opportunity to obtain immediate cash flow savings through either:

1. Closing out and settling outstanding claims; or
2. Identifying any recent losses from forced closures by government bodies and then preparing the claim. The Marsh Claims Solutions team can help quantify the losses and then advocate on a client’s behalf to maximise recoveries and expedite settlement.

The management of large losses following a disruptive event or dispute can be extremely complex. Marsh Claims Solutions can provide comprehensive support to guide you through the key aspects of post event management. This support can include:

• Loss quantification and claim preparation — swift assistance to help secure cash flow, assist mitigation strategies, quantify losses, as well as present and settle insurance claims.
• Claims project management and claims engineering — assistance with the claims process to enable you to concentrate on ongoing business matters while helping you to maximise a fair and reasonable recovery.
• Fidelity and liability claims support — assistance with preserving and recovering evidence and interviewing employees to measure economic damages, helping to increase the likelihood of a full insurance recovery while minimising investigative costs.
• Dispute advisory — assistance with dispute resolution, expert witness testimony, and litigation support throughout the dispute resolution process to help you resolve issues in an expeditious and cost-effective manner.
• Uninsured loss recovery — assistance in pursuit of recovery rights against responsible third parties for uninsured property, financial and marine claims.

For more information, or to arrange a conversation with our Claims team, please contact your broker. 

Reduce insurance premiums 

With competing cash flow pressures, it’s important to re-evaluate if your business can take more risk on and therefore reduce insurance premiums. The first part of this is to:

1. Work with your broker to identify what is the business’ risk bearing capacity, i.e how much financial impact can a company withstand without significantly impacting its operations; and
2. Understand what business’ strategic appetite is to take on more risk. Marsh Risk Analytics can model the losses that the business is exposed to and then conduct Risk Finance Optimization (RFO). A RFO mathematically determines what are the company’s ideal deductibles and limits that will result in the most cost effective outcome.                     

In addition to the above, companies have also faced significant changes within their workplace. With more employees working offsite their risk profile has changed and through redesigning the worker compensation program they may be able to capitalise on reduced insurance premiums and rebates.

For more information, or to arrange a conversation with our Risk Analytics team, please contact your broker. 

Trade Credit

Trade Credit Insurance protects business income. It is ideal for both domestic and export businesses selling goods or services on credit terms to another business. Protection can be arranged for insolvency of a buyer, protracted default, contract repudiation, protracted default, voidable preference payment claims and more.

While it is primarily designed to protect a business selling on credit terms against non - payment by one of its debtors resulting in a bad debt loss, Trade Credit Insurance also brings a number of other benefits to a business.

Most business plans and concerns are based around sales, credit management and finance. Trade credit Insurance assists in all of these areas.

Credit management – strengthens processes and procedures, allows for reduction of bad debt provisioning, provides ability to offer more competitive terms to customers, offers a financial insight into a prospective customer while monitoring existing customers. Utilisation of the credit insurers collection facilities.

Sales - Growing sales and attracting new customers, selling into new countries, retaining more customers. It reduces the barrier to a sale and provides a competitive advantage to the seller by allowing open account trading and therefore reducing the need for Letters of Credit or cash payments while retaining margin.

Most businesses offering credit terms require bank borrowing to assist with cash flow. Trade Credit assists in obtaining trade finance/invoice finance from a banking partner and can help increase the amount able to be borrowed, reduce interest rates or can reduce other security requirements.

Marsh’s Credit Specialties team can provide a complete solution for your Trade Credit needs providing specialist advice, structuring solutions, researching market capacity and arranging Trade Credit policies. They also provide current industry and market advice and developments.

For more information, or to arrange a conversation with our Credit Specialties team, please contact your broker.

ACC and Wellbeing Support Services

The impact of COVID-19 on many New Zealand businesses should not be underestimated, with majority of businesses having to completely review their operating environment.

Marsh in New Zealand is able to support employers with managing risk to their people. Through our subsidiary company Wellnz Limited assistance can be provided in reducing workplace injuries and illness, and managing any incidents that occur.  

Through our network we can provide access to online occupational specialists and mental health specialists for employers and their employees.  Wellnz can provide options for large employers that have seen ACC costs reduced by over 50% and can look at options to reduce your ACC and absenteeism costs. As an essential service, through this pandemic MMC and Wellnz are fully operational with all staff available to provide services in New Zealand.  

For more information, or to arrange a conversation with the Wellnz team, please contact your broker.

Premium funding

In light of the COVID-19 situation and the impact this is having on the economic environment, we expect many of our clients’ businesses to be impacted due to a downturn in trade. More than ever, these are the times insurance programs and adequate coverage levels protect our clients and their businesses. Insurance is a cost which can be significantly managed through premium funding.

Premium Funding is a tool which helps businesses to manage their cash flow and preserve working capital. Marsh offers clients a premium funding solution for insurance premium costs.

If you would like to spread out the cost of your insurance premium payments and preserve your working capital, please speak to your broker who can arrange a conversation with a member of our Premium Funding team.

We are here for you

As COVID-19 continues to affect how we all do business and interact with one another, we are committed to continue to deliver timely and relevant information to our clients and broader community. If you have any questions or would like to have a conversation about the impact coronavirus is having on your business, please reach out to your Marsh representative, or email us here.

You can also follow us on LinkedIn to stay abreast on our latest updates. 

The information contained in this page provides only a general overview of subjects covered, is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. Insureds should consult their insurance and legal advisors regarding specific coverage issues. All insurance coverage is subject to the terms, conditions, and exclusions of the applicable individual policies. Marsh cannot provide any assurance that insurance can be obtained for any particular client or for any particular risk. Statements concerning tax, accounting, and legal matters should be understood to be general observations based solely on our experience as insurance brokers and risk consultants and should not be relied upon as tax, accounting, or legal advice, which we are not authorized to provide. All such matters should be reviewed with your own qualified tax, accounting, and legal advisors.