The Benefit of Boutique: Portfolio Consolidation

40 Communities, 1 program

Background:  Tartan held the master policy for 17 of the 40 communities in the portfolio. The remaining 23 communities were placed separately with a regional carrier, splitting the client's risk across two programs with two sets of terms.

Challenge:  At renewal, the regional carrier proposed a difficult increase on the 23-community book. At the same time, the lender introduced revised insurance requirements across the portfolio. The client needed one path forward that met the new requirements, controlled cost, and didn't leave the portfolio split across carriers.

Solution

Tartan built a consolidated policy structure bringing all 40 communities under a single master program. The results were improved pricing and terms across the entire portfolio, appropriately leveraging the scale and spread of risk.

Commentary

The new program structure achieved improvements at the parent company and community levels. Even under a consolidated format, options were presented to allow for spread of payments (cash flow) and even multiple limit towers. With the right application, scale can be leveraged!