UNSC independent consultants

Licensed international insurance brokers

Founder    Ulrik Nottelmann MsC

Founder

Ulrik Nottelmann MsC

CASES

UNSC has a pledge of secrecy. All cases in this overview is followingly distorted so much that no one will be able to recognize the client or the company.

But it all happened, even not in the same time and not in the same company……

THE LISTED HOUSE

The client owned a big and very famous house in the middle of a big city. They were very proud of the building and it was considered important for their reputation.

By our initial analyses we found a huge problem. The policy wording in the insurance would only pay for a rebuilding in the original form using original materials and methods if the building was rebuild in this shape. If so much of the building burned that the statuary requirements not any longer called for a total rebuilding, they would only pay for a modern office building of same size, being very much cheaper.

The company had paid a lot for the famous building and if they instead suddenly was left with a modern office-building they would face a substantial loss of market value. The difference would be that big that the equity would be threatened.

We had to change provider to get a better wording and close the substantial challenge to the company.

THE HIDDEN GOLD IN THE RACKS

The client made many new products every year. They sold a lot of them immediately, a lot was later on sold to reduced prices and the rest was deposited in the big stock. In the financial report the value was estimated being 100% , 50% and 0% and so was the insurance against operating loss also constructed and calculated.

In our analyses we very early concluded this to be a severe failure with a huge loss potential. The fact was that every day they sold a little of each old product from the stock, but to 100% price and together 50% of the companies profit came from this disdained sale.

All products had a “tale” of 5 years. This meant that a fire in the stock would cause a substantial loss for the next 5 years. It would be impossible to reproduce all old products in time as well as in costs.

We had to redesign a new loss of operation insurance with a better period and more adequate sum insured.

DANGEROUS CALCULATION

The company was very much dependent to electronical equipment. Being rather big ,they had estimated the value of the goods insured by doing a very precise calculation for a certain small area and then multiplied the result.

A very dangerous method and we did immediately a change. We focused in stead on function and asked the purchase department for a prize. Or being more precise, we asked for two prices. One if a damage happened right now and an other if the damage happened 5 years later where the digital technique would have taken over following the investment programme.

We saved a lot of money for the client and negotiated a wording for the insurance cover which indemnified the client accordingly if a damage meant that the change of technique would happen earlier than programmed.

DONT PUT ALL EGGS IN THE SAME BASKET

The company worked with garbage collection and had several garbage trucks of with many special adaptions for the purpose. This was mandatory by the contract negotiated.

Every night all vehicles gathered in the same garage, which meant a huge danger in case of a fire.

By a loss of a vehicle, this should be ordered and produced by the provider in Finland. The company would have to wait at least 12 months to get a new vehicle as replacement. In the meantime they would loose the contract.

The vehicles were immediately divided to 3 different garages.

THE BOTTLE NECK

Our analyses of the production facilities identified a couple of multiprinters placed less than one meter from each other as the bottleneck. All items had to pass them and if they were damaged the production would immediately stop 100% both before and after them.

The easy part was just to place them with so much distance that we had a chance to save the one if the other was damaged i e in a fire. But what in case of a breakdown? How fast could a shaft be replaced?

We called the provider and the answer was : at least 1 year.

The client ordered a shaft the same day to be placed in a stock as spare part.

NEW NEIGHBOURS

Already on the parking place outside the buildings we noticed the height compared to the rather short distance to the newbuild houses belonging to others.

We examined the local plan. It had been changed. It would never be possible to rebuild the industry in the same shape on the same spot after a fire.

We had accordingly to change the insurance cover making it possible to move the indemnification to rebuilding an other place including even the buildings saved.

THE GOOD COLLEAGUE

In a prosperous company one of the founding partners got ill. No agreement was in place telling how to deal with this unlucky situation. How long could he be missed as a leader and labour ? How much could they afford to pay him and for how long?

He recovered but all had understood this warning and we was required for an analyse. They needed as well a contract as insurance cover for the key figures in the company.

FOR THE BEST?

A group had civil servant status with a good pension plan. The public employer cancelled this for the future and negotiated in stead a new pension plan.

The original pension plan offered the members a pension equal to the last wage they earned and for lifetime. The new pension was reduced to a part of their average income during the many years they had been working and only for 10 years.

We was required to do fair calculations on the loss the staff had faced by this change and make it possible for the union to renegotiate this unfair agreement.