When choosing an insurance carrier, retail clients and their brokers consider pricing a critical element—after all, retailers' customers expect them to offer competitive prices. AFM identifies retail 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 core principle.

Consistent annual growth, as depicted by this chart, lets us know that clients think our price, product and service offering is competitive in the market.

However, a program based solely on price doesn't consider all the factors essential for the kind of long-term partnerships that we believe are important to delivering maximum value. Therefore, in addition to providing a competitively priced program, AFM works with retail clients to:

Find out why long-term partnerships matter.

Explore ways to begin partnering


Stabilise pricing by taking a long-term view

Taking a long-term view helps reduce short-term pricing volatility—an important factor when selecting an insurance partner.

Insurance pricing volatility is a frustrating reality. Even when a retailer's 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 AFM is less reliant on reinsurance pricing, we can reduce our retail clients' exposure to pricing volatility, thus helping them manage their annual budget.


Reduce cost by improving risk profile

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

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

A publicly traded retail account with seven distribution centres and 250 shops was submitted to AFM for consideration. The retailer was facing a considerable rate increase because the account had a five-year combined ratio of 175 percent.

AFM production underwriters worked with the broker and client to devise a programme that would save the client 26 percent compared to their expiring premium. The production underwriter also helped to develop an annual aggregate deductible programme, which absorbed many of the smaller losses that were hurting their loss ratio while still transferring the larger exposure to AFM.

In addition, AFM engineering services devised strategies and risk management practices to help the client lower their long-term cost of risk. This approach will enable them to lower their deductible over time.