A manger said "we'd accumulated a lot of (insurance) policies over the years
and at time we just paid our bills and didn't look at what we were paying for"
-CPG'S over spending on insurance could have been avoided if the firm has simple asked its broker a few basic questions and notify him of certain changes.
for a while year, CPG had been paying for coverage on four rental cars when it had only three.
when we asked, why didn't you take that fourth car off policy? the answer was you didn't tell us to.
- Managers try to deal with problem. they found workers' compensation plan got big problems. Several employees were in higher risk categories than they should be because the company base job classification on salary and position rather than activities
- CPG also asked the broker to translate all policies into "real english" , something they can understand. They found an insurance was bought because of misunderstanding the technical terms. Is was unnecessary.
- CPG found the biggest cast saving simply by asking for lower premiums on rarely used policies.
- as a result the company save 10000 per year on insurance. The most important thing is " we've learned to be proactive and ask questions," says the managers "as opposed to just blindly accepting what they give us".
Questions
1. what are the problems of CPG
Ans
2. How did they deal with it?
3. what are the result?
4. Do you have any suggestion for CPG?