Expense ReductionAnalysts

ERA Insurance Cost Management Ltd

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“I was particularly concerned that, as a new company coming out from the shelterof a group insurance programme, we might face an increase in premiums. Thegroup insurance covers were very generalist and there was a definite need for aprogramme more suited to Zavvi’s retail operations. We were also used to the extensive support of a group insurance department and, therefore, needed to review our administration and risk management procedures.

I was very impressed with the depth of expertise which was applied to theexercise, which was a well balanced objective process and delivered manyimprovements including substantial cost savings. It was a painless process and one which I would recommend to all organisations.”

Steve PeckhamChief Financial Officer, Zavvi Entertainment

These are just some of the organisationswhose insurance premiums ERAICM hassignificantly reduced

Introduction

The ERAICM approach provides the only genuine method through which your organisation can achieve real competition in the insurance market

Introduction ERAICM 3

“We forged a very strong working relationship with the ERAICM team. They provided us with access to significant knowledge, technical expertise and experience and understanding of the insurance market which is not readily available to any organisation when they undertake this type of insurance review on their own.

The results show that this was instrumental in the successful outcome of the project. The savings on insurance that we achieved with the help of ERAICM exceeded all our expectations. We would not have made those savings without their valuable guidance.”

Geoff Hunt Deputy General Counsel, Volkswagen Group United Kingdom Limited

ERA Insurance Cost Management(ERAICM) is a division of Expense Reduction Analysts, the largest costmanagement consultancy in the world.Its sole aim is to provide the maximumreduction in insurance costs for each ofits clients whilst still maintaining scopeof cover and service backed by proactive risk management.

ERAICM is not a broker or insurer anddoes not handle or transact insurance,giving the significant advantage of independence when negotiating withsuppliers. Its unique positioning ensures no vested interests and this, together with the vast experienceearned from the wide diversity of theprojects which have been undertaken,has created strong relationships withinsurers and brokers alike.

The Benefits

The ERAICM approach is pragmatic and delivers real financial savingswhilst maintaining quality, regardless of whether the insurance market ishardening or softening.

Major Benefits include:

• The maximisation of cost reduction opportunities due to the negotiation and delivery of premium savings which would otherwise not have been available

• Focused broker service delivery

• A simple and unobtrusive approach, minimising the amount of management time required

• The strategic positioning of your risks to optimise the good features

• The use of quality insurers and brokers which, in the majority of cases, are household names

• The creation of a sustainable and profitable partnership between you and your insurer

ERAICM currently enjoys a success rate of over 98%, with average cost savings of 17.5% achieved for clients.What effect could a saving like this have on your organisation’s bottom line?

4 ERAICM The Benefits

“I would recommend ERAICM without hesitation. The approach of the team has been very professional and they handled our renewal process in its entirety.They are very knowledgeable about the insurance market and how the whole industry operates and this insight gave us a valuable advantage.

In fact, one of the main benefits was that they were able to better present our risk profile to the insurers by reviewing where our risks really lay and this had a massive impact in reducing the premium.”

Chris WadeDirector of Finance, ATOC

All of this is delivered whilst maintaining scope of cover and yourcurrent level of support services.

Unlike insurance brokers, ERAICM will work with you under a no-saving,no-fee arrangement as with all otherExpense Reduction Analysts projects.This means that if a saving is notachieved you will not be charged a fee, whilst receiving the peace of mindthat you are not being over-charged for your insurance.

The Benefits ERAICM 5

“The process was painless. ERAICM asked the right questions and we were able to give them the right information. This was borne out when the proposalsmade by ERAICM gave Nightfreight new policies, with considerable additionalvalue for the Group.

I would happily recommend ERAICM, if companies need an eye in the market and want to understand the insurance language to present their profile accuratelyand effectively.”

Ian HorsfallGroup Finance Director, Nightfreight GB

Market Negotiations

The marketing of a client’s risk and insurance programme can be influenced by several factors.

These include:

• Poor perception of client’s risk because of historic operations or claims experience

• The existence of a broker review exercise

• Political considerations where an insurer would like to quote but the importance of the existing broker account acts as a constraint

• Brokers’ use of preferred insurers

• Incumbent broker’s defensivestrategies in closing down the markets

• A lack of access to exclusive facilities and markets

6 ERAICM Market Negotiations

“Despite having a good grasp of insurance and managing our operational riskswithin our management team, we recognised that we are not experts in the insurance market.

We elected to engage ERA Insurance Cost Management Ltd (ERAICM), to undertakean independent review of our insurance and risk programme in line with the OJEUprocess and assist us in maximising the response from the insurance market.

We appreciated ERAICM’s impartial and independent focus, and the professionalway in which they managed a complicated time-consuming process, which gave us peace of mind knowing that we are now receiving best value from the insurance market.”

David GordonCompany Secretary, Hanover Scotland

The ERAICM approach overcomes these marketing constraints. Insurers recognise that there is a truly level playing field when ERAICM is involved. Consequently, better responses in terms of both cost and cover can be achieved.

We can apply our entire process to your business or select elements of it, enabling us to tailor our solutions to your specific needs and requirements. We use proven techniques to understand your organisation’s profile and only then do we design a programme or activities that is right for your organisation.

In the course of a project ERAICM will:

Identify the issues

Manage market negotiations

Interpret the results

Implement the solutions

The Project Process

ERAICM will guide your organisationthrough this entire process in a simpleand unobtrusive manner to achieve your objectives

The Project Process ERAICM 7

The Challenge

Insurance premiums and expenditureon risk management and self-insuredlosses can represent a substantial costfor organisations in every sector ofindustry and commerce. But howcertain can you be that these costsare being managed in the mosteffective way possible?

As well as an organisation’s own risks, exposures and historic claims experience, there are several externalfactors which directly affect the cost of insurance premiums:

• The shifting insurance market cycle

• The market’s perception of an organisation’s risks – often historically based and not always reflecting the current business activities

• Broker’s preferences for specific insurers with whom they have a large book of business and where balancing this portfolio may not always be in a particular client’s interest

These factors demonstrate the purchaseof insurance and risk managementservices must be treated as a dynamicprocess. So how can cost reductionbest be achieved whilst still maintaining scope of cover and level of support services?

Historically, organisations have addressed this issue by carrying out an insurance broker review. However,this process is not only extremely time-consuming for management but is also inherently flawed.

Defensive strategies from the existingbroker in an attempt to close downmarkets and the competing brokersswamping insurers with alternativeenquiries, only serve to create constraints in achieving the best programme for the client.

ERAICM is fully authorised and regulatedby the Financial Services Authority

8 ERAICM The Challenge

“We were very pleased with the unobtrusive and unique approach ERAICM took towards our insurance and risk programme. Their expertise in alternate broker selection and market negotiations certainly paid dividends for FPA and this wasdemonstrated in the final outcome. We made excellent savings and were sopleased with the alternate broker that we appointed them for renewal. I would thoroughly recommend any organisation to engage with ERAICM for an insurance review.”

John GibbonsFinancial Director, Family Planning Association

A Unique Approach

The ERAICM approach is an effective alternative

A Unique Approach ERAICM 9

By using expertise and volume leveragein the marketplace, ERAICM hasdeveloped quality partnerships withmajor brokers and insurers and set up facilities exclusively for Expense Reduction Analysts clients. The independence and objectiveness ofERAICM ensures that the best deals are always secured for its clients.

Key benefits of our process are that it is both unobtrusive and straight-forward. In effect, ERAICM will act on your organisation’s behalf as facilitators, taking the burden awayfrom you and saving management time. This streamlined approach allowsERAICM to be extremely agile in itsbusiness, which has proved particularlyeffective to achieve optimum results inthe often tight renewal timeframe.

Its focus is to ensure that yourrelationship with insurers and brokersmoves from being purely transactionalto a fully interactive process, thus opening up the opportunities for your organisation to receive addedvalue benefits from them.

An important factor in this process is the strategic positioning of your riskportfolio so that the good features,such as risk management initiatives and claims experience, are properlyrecognised in the pricing of premiums.

The large number and range of projectsalready undertaken by ERAICM has provided it with a unique insight intothe insurance market and enables it tounderstand what is truly possible toachieve where conventional thinkingfalls short. Consequently, ERAICM consistently obtain results which clientscould not achieve for themselves.

ERAICM has saved clients as much as 80% on insurance costs and, on average,achieves a saving of 17.5% within thisarea of expenditure, whilst delivering significant additional benefits

A Compelling Proposition

ATOC Acheson Glover Albyn Housing Society Berwickshire Housing Association

British Autogard Cambridge Regional College Charville Estates Condor Ferries

Currie & Brown Dunne Group East Lothian Housing Association Family Planning Association

Fife Housing Gloucestershire College Hanover Scotland Independent Forgings & Alloys

Indigo Services Infoteam Irish Waste Lionverge Civils Lombok Mayflower Theatre Trust Medway Foods

Metco Services Morgan Cole N R Evans Logistics N Sethia Group Neoss

Nightfreight Odfjell Drilling (UK) Poole Harbour Commissioners QTR Transport Rosebery Estates

Scott Group Sector Security Service Innovation Group Sheffield International Venues

The Fry Group The Lowry The Thinktank Trust US Airtours Holidays Volkswagen

Weymouth College WJ & H Crozier Wartsila UK Limited Welmede Housing Association Zavvi

These are just a few of the companies we have helped achieve savings for:

10 ERAICM A Compelling Propositon

Expense ReductionAnalysts

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Argentina Australia Austria Belgium Brazil Canada Chile Columbia Ecuador France

Germany Greece Hungary Jordan Italy Lebanon Luxembourg Mexico Morocco Netherlands

New Zealand Panama Portugal Spain Taiwan United Kingdom United States Uruguay

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ERA Insurance Cost Management Ltd is authorised and regulatedby the Financial Services Authority