The Solution
The engagement led to a clear identification of actionable areas, allowing the client’s board to focus on strategic decision-making while ERA handled specific operational improvements.
Insurance Optimisation
Paul Gravatt, an ERA insurance specialist, was engaged by Magna Housing to conduct a strategic review of their insurance procurement six months ahead of renewal. Faced with a deteriorating claims performance, challenging market conditions, and the anticipated withdrawal of their core Property Stock cover-holder’s underwriting capacity, Magna was bracing for significant premium increases.
ERA facilitated a detailed review of historic insured losses and identified opportunities for improved risk management and proactive claims handling. A revised insurance structure with increased deductibles was designed, and a new broker, aligned with Magna’s service needs and ERA’s strategy, was appointed to negotiate terms with alternative insurers.
ERA conducted an impact analysis, allowing Magna’s management to make informed decisions on deductible and cover options. The new structure produced initial annual cost savings of over 32% compared to the best terms offered by incumbent insurers, even after accounting for sub-deductible losses retained on Magna’s balance sheet. Additionally, active risk management is expected to yield further savings from the surplus in the sub-deductible claims fund, ensuring long-term sustainability. The new insurance structure, combined with ERA’s ongoing support, enables Magna to maintain greater control and visibility of their total cost of risk.
Fuel Card Efficiency
Expert Steve Vare provided Magna Housing with clear insights into the costs associated with fuel card usage, resulting in a 6.6% annual saving with a new supplier. After analysing Magna’s previously used fuel sites, ERA mapped alternative fuel card networks to ensure no undue route deviations for their drivers. In addition to reduced fuel costs, the new arrangement offered fixed prices linked to the wholesale fuel price, allowing Magna to benefit immediately from price drops. Further savings were realised by removing transaction charges.
Mobile Phones Optimisation
Burdened by two complex mobile networks and unfavourable contracts, Magna Housing sought efficiency improvements. ERA stepped in to streamline operations and optimise costs, focusing on network consolidation and spend visibility.
ERA successfully consolidated Magna’s mobile networks under a single, reputable supplier, simplifying administration and providing a single point of contact. They implemented a comprehensive system that granted Magna a ‘single pane of glass’ view of their entire mobile estate. This real-time dashboard empowered Magna to make informed decisions, identify cost savings, ensure employees had suitable plans, and strategically allocate resources. ERA’s ongoing support ensures continuous optimisation.
The results were significant: Magna achieved annual cost savings exceeding £100,000 and gained a more flexible contract structure, allowing them to adapt to changing technologies with ease.
Savings Breakdown
