M&A Insurance Due Diligence: Real Savings, Not Just Promises
Why Insurance Due Diligence Matters in M&A
M&A transactions force companies to reevaluate every major cost center. Insurance is often one of the largest, but also one of the least examined. According to a recent survey by Travelers, nearly one-third of companies change their broker or carrier after a deal closes. That shift isn’t just about dissatisfaction—it reflects changing risks, new ownership structures, and fresh financial oversight.
For Private Equity firms and CFOs, the M&A process is a rare opportunity to benchmark coverage, identify excess costs, and rework insurance strategies for a stronger post-close position.
The Problem with “Free” Due Diligence
Large brokers like Marsh, AON, and Willis often offer insurance due diligence services at no upfront cost. But there is a catch. These firms typically expect to win the insurance placement once the deal closes. That pressure can leave companies feeling obligated to switch brokers, even when it may not be in their best interest.
At PolicySmart, there is no hidden agenda. We don’t compete for broker placement or earn commissions. Our role is simple—identify where your insurance is overpriced, underperforming, or out of sync with your goals.
What Makes PolicySmart Different
True Independence and Full Client Control
We are not a broker and we don’t sell insurance. Our model is built entirely around uncovering savings for the client. That means we don’t earn fees from carriers or vendors. Our only focus is aligning your policies with your needs and budget.
When we evaluate your current setup, the outcome is yours to decide. About 40% of clients renegotiate with their existing broker. Around 60% choose to move to a new broker or carrier based on our recommendations. No pressure either way.
Access to a Broader Market
Large brokers are limited by their own carrier relationships and preferred vendors. PolicySmart uses a proprietary database to give clients access to a broader network of insurance companies, plan providers, and retirement platforms. This wider view creates leverage and surfaces better pricing opportunities across every insurance category.
Compensation Based on Savings, Not Sales
We are only compensated when we generate measurable savings for our clients. If we can’t find ways to reduce your costs or improve your coverage structure, you don’t pay. That keeps our interests aligned with yours from start to finish.
Three Areas Where PolicySmart Finds Cost Savings
Property & Casualty (P&C)
We evaluate existing policies for pricing inefficiencies, unnecessary riders, outdated risk classifications, and underperforming structures. Whether your company is moving to a new structure or growing through acquisition, we ensure the policy reflects your real exposure and industry benchmarks.
Employee Benefits
Benefit plans often grow bloated over time. Our reviews identify inflated premiums, underutilized offerings, and broker commissions that cut into plan value. We deliver a clear path to leaner, more affordable benefit designs that still meet employee needs.
401(k) Retirement Plans
Retirement plans are full of hidden costs—recordkeeping fees, investment inefficiencies, and poorly optimized plan design. We benchmark your 401(k) structure against industry standards and uncover savings that can benefit both the employer and employees without compromising plan quality.
Timing Is Everything in M&A Due Diligence
Too many companies wait until after the deal closes to examine insurance. By then, options are limited and negotiating leverage is lost. PolicySmart gets involved earlier in the process so clients can:
- Maintain full control of insurance decisions
- Avoid conflicts of interest tied to broker incentives
- Evaluate and improve every major insurance cost center
- Build a post-close strategy based on savings, not sales pressure
A Smarter, Conflict-Free Approach
Most diligence providers double as sales reps. Their goal is to secure the insurance placement. PolicySmart takes the opposite approach. We stay out of broker conflicts and deliver clear, unbiased data. Whether you keep your broker or switch, you’ll have the information needed to make the right decision for your business.
Due Diligence That Delivers
Insurance due diligence shouldn’t be a formality. It should be a value-driver. If your diligence partner is also your broker, you’re not getting an independent assessment. You’re getting a pitch.
At PolicySmart, we don’t sell insurance. We fix it.
If you’re planning an acquisition or restructuring an existing insurance stack, now is the time to benchmark your policies, cut unnecessary costs, and take back control.
Ready to uncover savings across P&C, employee benefits, and retirement? Let’s talk.