How CFOs Can Close Budget Gaps Without Changing Insurance Brokers
Struggling with the Gap Between Budget and Actuals? You’re Not Alone.
As economic uncertainty continues and boards demand more streamlined budgets, CFOs are under increasing pressure to do more with less, often without a clear roadmap for savings. Insurance becomes a challenging line item for many: premiums rise, brokers promise to “negotiate better deals,” but costs still escalate.
The good news is, you don’t have to switch brokers to save money — use PolicySmart.
Why Traditional Broker Reviews Often Fall Short
CFOs are often reluctant to question their current broker relationships—even when the costs seem inflated—because changing brokers can be time-consuming, politically sensitive, or simply too much of a hassle.
The issue? Brokers are typically paid commissions by their carriers, so their incentives may not always align with your financial goals. Even with the best intentions, brokers may not present every potential cost-saving option, especially if it results in lower commissions for them.
This is where an independent insurance audit can make all the difference.
What an Insurance Audit Truly Uncovers
An independent insurance audit compares your current property/casualty and employee benefit policies against up-to-date market data sourced from PolicySmart’s proprietary database. This on-cost benchmarking step can reveal:
- Coverage gaps or redundancies
- Opportunities for better pricing from your current carriers
- Unnecessary or duplicate endorsements
- Hidden fees from brokers or vendors
- Pinpoint broker specialists for your industry
- Pinpoint new insurance carriers not represented by your current broker
- New and creative ways to structure your insurance program
- Outdated plan designs or limits
At PolicySmart, we’ve found that CFOs can often lower premiums without changing their broker relationships. The key is deeper market access using PolicySmart’s database and independent oversight.
How to Audit Your Insurance Policies Without Straining Relationships
Auditing or benchmarking your insurance policies doesn’t have to create conflict with your current broker. Many clients share the audit findings with their broker to help secure better rates. This approach allows you to negotiate based on concrete data, rather than a vague sense that you’re overpaying or carrying unnecessary coverage.
Through our proprietary platform, PolicySmart confidentially reviews your policies and compares them against over 600,000 data points from similar organizations. With access to more than 13,000 specialty brokers in 120 countries, you gain unparalleled insights—without disrupting your existing vendor relationships.
For New CFOs: A Fast Way to Assess Risk and Spend
If you’re new to the CFO role and working with a new Board of Directors, an independent review is an efficient way to assess existing coverage and test long-term vendor relationships. This independent oversight helps pinpoint what’s working and what isn’t—overspending, gaps, and duplications—without rushing into changes.
You Don’t Pay Unless You Save
Unlike brokers, we don’t earn commissions or sell insurance. Our approach is straightforward: you don’t pay unless we save you money. And we put that guarantee in writing. That’s why we’ve secured over $130 million in savings for our clients, with a 95% success rate.
Next Steps
How do your policies measure up? Upload your documents for a no-cost, confidential, no-obligation initial audit.
- Receive a benchmark report and see how you compare with industry peers.
- Use this new market leverage to create a better outcome for your bottom line.
Close the budget gap—without creating a rift.
FAQs:
What’s the difference between benchmarking and auditing your insurance policies?
An insurance audit verifies the accuracy of your premiums and policy terms against your business operations. In contrast, benchmarking compares your coverage, costs, and risk management practices to similar companies in your industry, pinpointing areas to improve or validate existing coverages and costs.
The purpose of an insurance audit is to verify that your premiums and coverage accurately reflect your business’s actual risks and operations. During the audit, your business records (such as payroll, building values, claims, and sales) are reviewed to assess whether your current coverage matches your real risk exposure.
The audit may adjust your coverage or premium rates based on the findings. If you’re looking for an independent vendor review and verification of your insurance program, hiring a non-biased advocate such as PolicySmart to audit your coverage is the way to go.
Benchmarking your insurance policies allows you to evaluate your insurance program’s effectiveness by comparing it to industry standards and best practices. This process involves assessing your coverage, costs, and risk management strategies against those of similar companies in your industry. It offers valuable insights into potential areas for improvement, helping you enhance both your insurance program and its cost-efficiency.
How can CFOs reduce insurance costs without switching brokers?
CFOs can lower insurance costs by independently auditing their existing policies. This approach helps pinpoint overpriced coverage, avoid unnecessary fees, and discover more competitive market options without needing to switch brokers.
Why do insurance premiums keep rising even with the same broker?
Premiums tend to increase because of limited broker/carrier options, outdated plan structures, lack of effort and imagination, and commission-driven broker models. Without proper benchmarking, costs can escalate uncontrollably from one year to the next.
Is it risky to audit your insurance policies without switching vendors?
Not at all. Independent audits are confidential and non-disruptive. They provide leverage for better pricing and coverage. This all can be accomplished while maintaining your current broker relationship.