The situation
A UK-based hedge fund investment manager with approximately $20bn under management and employing around 340 people approached Bartlett after becoming increasingly concerned that its insurance programme did not reflect the reality of either how risk materialised or was controlled within the business. This was compounded mid-term when the firm launched a new, small, vanilla, investment mandate and received a bill for a substantially increased insurance premium.
The client felt that its broker, despite presenting itself as a specialist, did not fully understand the nuances of the business and was not actively challenging insurer assumptions. As a result, pricing reflected insurer uncertainty rather than informed judgement.
Our approach
We were engaged to review the client’s risk profile and insurer positioning. Our starting point was a detailed, structured deep-dive into the business, focusing on governance, investment strategies and risk controls, and how these operated in practice rather than how they were being perceived by the market.
Using this insight, we rebuilt the narrative presented to insurers, clearly separating perceived risk from actual exposure. This included repositioning the new investment mandate accurately within the overall risk profile.
We then led active, hands-on broking discussions with underwriters, ensuring both the quantitative and qualitative aspects of the business were properly understood and reflected in pricing and cover. This replaced generic disclosure with informed explanation, allowing insurers to price the risk with confidence rather than caution.
The result
The revised positioning delivered a premium reduction of approximately 30%, equating to a saving of around $170,000, and no additional cost for the new investment mandate, avoiding long-term structural over-pricing and removing uncertainty around disclosure.
In parallel, cyber insurance was introduced for the first time, addressing a previously uninsured exposure which further strengthened balance sheet protection. The client gained confidence that its business was being properly understood and robustly represented to the market.
The relationship has since continued for over five years, built on informed advice, active broking and consistent outcomes.