Insurance Consulting Case Study

Bank Insurance Coverage Review

I’m often asked what I do for my clients. I thought an ongoing bank insurance consulting case study might show, in a tangible way, what I do for clients and how I do it. This is an actual project I am currently working on. The names and other identifying information have been altered to protect my client’s identity. I have also added several clarifying points to the overview of issues (see the entry for May 14th) so the reader could understand the heart of the problem. No issues have been removed, added, or altered beyond identification and clarifying points.

December 3 CFO of ABC Bank emailed me interested in hiring an insurance consultant. He found me on Google.

Mr. Simmonds,

I am the CFO of ABC Bank, a $700 million community bank located in the state of ZZ. I have been purchasing the bank’s insurance for a number of years mostly upon the recommendation of brokers. Our bank is now selling insurance through its own insurance agency in partnership XYZ Insurance Brokerage.

ABC Bank is interested in obtaining an unbiased review of its existing coverage to determine if our levels of coverage are appropriate and/or whether there are coverages that are missing. You may contact me at my office or e-mail or snail mail, whatever your preference. I will be out of the office next week but will be here through Friday.

Hope to hear from you.

December 4 – I called the CFO and left a message.

December 6 – Talked with CFO on the phone. I reviewed my approach to insurance consulting for banks. I gathered initial information. We established his objectives in retaining a consultant. He wants a proposal – He is on vacation next week.

December 16 – I sent the requested proposal – three options: 1) Annual Insurance Management, 2)Due Diligence Review with remediation, 3) Due Diligence Review without remediation.

April 2 – After several attempts to contact, I sent the CFO an “I don’t-want-to-be-a-stalker” letter.

April 2 – He replied that he is interested and will call references soon.

April 30 – CFO called me wanting to go ahead – option 3 – Due Diligence Without Remediation. My job is to review the coverage and make recommendations. We will review the issues and the bank will fix the problems. I will be available for questions and guidance by email and phone.

April 30 – Sent CFO a list of information needed for the review.

May 4 – Received payment and signed contract.

May 6 – Received policies and other information by FedEx.

May 7 – Emailed CFO – some info in packet is conflicting. Called agent asking for clarification. Built schedule of coverage to confirm info.

May 8 – Agent updated the schedule and clarified information. I am now able to start the review. Asked the agent about plans for several policies that renew this summer. She replied. I offered several markets as suggestions.

May 14 – Completed initial review and emailed eight pages of issues for review and discussion. Asked client to suggest times for phone review of the issues. View Listing Here» (The names and other identifying information have been altered to protect my client’s identity. I have also added several clarifying points to this overview of issues so the reader can understand the heart of the problem. No issues have been removed, added, or altered beyond identification and clarifying points.)

Review Completed in Seven Days

May 14 – CFO emailed me with several dates. May 19th. He was surprised at the number of issues identified. I told him this is about average. Advised CFO that the review call would take about an hour and a half and that I was available to help as they worked through the issues.

May 19 – I explained to CFO that this is not the end of the project. He takes the info from our conversation and takes the needed corrective actions. I am available for follow up as part of the project. Two hour phone conversation with CFO covering the issues identified – got to page eight of ten. Set appointment for tomorrow to finish up.

May 20 – Spent another forty minutes with the CFO going over the remaining issues. Several questions came up regarding points mentioned yesterday.

May 20 – Emailed items I had promised the CFO – an article on employee use of personal vehicles and an article on the collision coverage on rental agreements. CFO will call me next week with issues and questions as they move through the remediation.