Brochure copywriting - Willis
As part of their rebranding, Willis needed to
tell multiple audiences,
particularly potential customers, how they do what they do, and what it could do for you.
As in other aspects of
the rebrand, we focused on Willis's most
compelling differentiator - its people - with a strong case-study
driven format.
A broader network; a deeper understanding
"Our Chilean office had been gently building a relationship with the client over the course of perhaps two or three years," says Mark Parker, "so we were pleased but not altogether surprised when we were invited to take part in a three-way competitive tender for the business."
It was no ordinary tender. The client, an electricity utility with operations in Argentina, Chile and Columbia, faced a number of one-off challenges, uncommon if not unique. They needed cover for a new turbine. They needed cover for transmission lines. And they also needed a lot of ongoing help at the local level. Mark Parker and his team began to put together a presentation.
The turbine was a problem, perhaps ironically, because it was the very latest thing. Insurers tend to be comfortable with tried and tested technology, whose reliability is a matter of record. But the Siemens 9.3A being brought onstream was new generation, which could mean reliability problems, which would mean serious losses of revenue. Transmission lines are also always hard to cover, being highly vulnerable to natural hazards such as earthquakes and hurricanes, and in Columbia you also have to add terrorism to the equation. In addition, of course, the usual spread of routine cover was required, often on a local basis, for everything from public and product liability to motor and marine. All in all, a comprehensive set of requirements.
"I think there were two main factors which won us the business," says Mark. "First, the sheer level of service – both centrally and locally. We made sure we were there to support them, whenever, wherever and however they needed us. Second, the way we were able to apply real expertise in gaining a better understanding of the situation – the real underlying levels of risk – and then leverage that understanding on the markets."
The foundation for the presentation, then, was laid by Willis engineers, from both London and Chile, who undertook a thorough analysis of the situation, giving Willis the ammunition for effective negotiation with insurers. The upshot of the analysis, and the negotiation based on that analysis, was two fold: better terms, at a lower price. On precedent, for example, the market would have been expecting 60 days business interruption deductibles. Mark and his team got that reduced to 30 days. Which means that if the new turbine breaks down, daily compensation for loss of revenue begins after 30 days rather than 60. At around $1/2 million a day, that could make a $15 million difference to the bottom line.
Having applied engineering expertise to redefine the specification, the next job was to get cover on the markets. "This is all about who you know, and how much you know about them," says Mark. He and his team begin with the total package of insurance required, then use their knowledge of different insurers’ capacities and specialties to determine two things: first, how to subdivide the total risk, and second, where to place the pieces.
They might, for example, package the bulk of the more routine business for a major UK insurer, excluding specialised areas such as terrorism or new turbines, depending on their profile. Then take the remaining elements and essentially repeat the process: identify a taker for a discretely packaged part of the remaining risk, then reassess again. Subdivide and sell, and repeat until you have takers for the entire package: essentially applying knowledge of the market to find the right people to hold the right risks at the most advantageous total cost. In the event, the final package "ended up as 24 slips, involving something like 40 insurers. From Chile, Argentina and Columbia, of course, but also from Mexico, Miami, New York, Canada, London, Scandinavia, Paris, Munich, Zurich and Sydney."
And Willis support looks set to remain for some time to come. Another unusual step taken by Mark’s team was to propose an initial two year appointment, based on their perception that the market would harden, bringing higher prices. A two-year deal was fixed at the prevailing rates - a decision subsequently vindicated, as markets did indeed harden.
Another key factor was Willis’ contribution on the ground. One of the main roles undertaken by Willis’ local offices was in negotiating terms with local insurers. In Argentina and Columbia, it’s a legal requirement for locally-domiciled companies to write the business even if they can’t retain it, in return for a commission. Willis offices were able to negotiate very competitive terms for these commissions.
More generally, the local offices and the central team liaise closely on an ongoing basis, bringing central skills to bear wherever they are needed, while also acting as a conduit for front-line information and feedback to be incorporated in the overall strategic decision-making process.
"We approached it as a team, and we won it as a team," says Mark. "And by servicing it as a team, we’re delivering better cover and better service at a better price."
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