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A large, U.S.-based retailer of automobile parts recently experienced significant setbacks in the area of natural catastrophe exposure. Claim incidents had increased by 15%, resulting in a quoted premium increase of 86%. The renewal of the company’s property insurance was too expensive in light of these adverse losses.


  • Mitigate the large financial impact of the increased insurance premiums
  • Reduce the absorption of losses under large non-marine policy deductibles
  • Reduce administration, while enhancing integrated risk control operations

The Willis Solution:

Willis proposed a key strategy for the situation: move from a traditional, Non-Marine Property & Ocean Marine program, to a more blended program.

To do this, we recommended that stock exposures be transferred from a non-marine policy to form a Stock Throughput program within the Marine Market.

The Willis Client Advocate® contacted a Willis Associate specializing in these programs. The Associate outlined the concept, and quickly explained the benefits of switching, including:

  • A unified, seamless policy (stock and transit policies were now blended into a single policy)
  • Open ended coverage — no imposed time limitations on storage were required
  • Coverage would now be provided on a "cradle to grave" basis
  • The Selling Price valuation would reduce Business Interruption exposure on non-marine property policies
  • Deductible levels were competitive, and generally lower than non-marine property policies
  • Greater access to, and better utilization of existing and new market capacity


Willis provided a blended program, including a new Stock Throughput section, for a quoted renewal that was 25% lower — saving the company $1.2 million. Willis also negotiated more competitive deductible levels, further reducing the overall cost of risk for the client.

The auto parts retailer is now using this new model as the foundation for their complete property program, furthering their business goals and fostering ongoing potential savings.

For more information, please contact Paul Codd at coddp@willis.com

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