When choosing an insurance carrier, middle-market insurance buyers and brokers consider pricing to be a critical element. Affiliated FM identifies middle-market clients with strong risk performance factors, and provides them with market-leading broad coverage and engineering services at competitive rates. Better risks deserve better insurance programmes—this is our founding principle.

However, a programme based solely on price doesn’t consider all aspects of the relationship that help support our belief in building Long-Term Partnerships.  Therefore, in addition to providing a competitively priced program, Affiliated FM works with clients to:

Affiliated FM values established relationships with clients. This is reflected in their rates and market stability.
— Broker

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Stabilise pricing by taking a long-term view

Insurance contracts are negotiated on a one-year basis and are often subject to the pricing volatility of a short-term horizon. Affiliated FM works with clients to take a longer-term view of developing a sustainably competitive offering—stabilizing a client’s risk transfer budget.

Contract pricing volatility is a frustrating reality. Even when clients’ asset value and risk exposure remain unchanged, their costs can vary significantly year to year. Although clients may enjoy better pricing in a soft market, a hard market may yield double-digit increases that exceed their budgetary constraints. Because Affiliated FM is less reliant on reinsurance pricing, we can reduce our clients’ exposure to pricing volatility and help them transfer risk within their budget.


Reduce cost by improving risk profile

The practical application of creative thinking and engineering solutions can help clients lower their long-term cost of risk.

"Engineering is very beneficial to our clients - especially at keeping insurance costs competitive."
— Broker

Premium cost is directly tied to exposure. Affiliated FM works with clients to identify where exposures can be reduced, often resulting in a more competitive offering. Read how Affiliated FM worked with a broker and the broker’s prospective client to improve the client’s risk profile and secure a more competitive program.

The client manufactures anti-allergy medications using raw materials such as animal hair, pet dander, dust mites and various pollens. Four issues made it challenging for them to find necessary coverage at a competitive price:

  • Pharmaceutical manufacturing can be a restricted class of business.
  • They have a cleanroom environment, which means high damageability percentages.
  • They use raw materials that present the potential for dust explosion hazards.
  • Their water supply was insufficient for their fire sprinklers.

The manufacturer’s broker introduced the client to Affiliated FM, explaining that they were willing to make changes in order to enhance their risk profile. When our Basic Site Overview of their main facility revealed the need for significant sprinkler system improvements, our account engineer helped the client and broker to develop a scope of work for competitive bidding. With bids in hand and a business plan for growing their operations, the prospective client approached the local county government to request a sprinkler grant. The grant was received and the sprinkler systems were installed.

As a result of Affiliated FM’s willingness to apply creative thinking to develop competitive programmes, this client can:

  • Lower their long-term cost of risk
  • Add an element of stability to their insurance programme
  • Protect business continuity and job growth as the company continues to grow