Case study · Real Estate Investment Trust
A national REIT reached 100% tenant insurance compliance and cut insurance costs
How Summit took a national REIT to 100% tenant insurance compliance with ERP-integrated compliance software, then used the improved risk profile to secure better rates and coverage across its real estate schedules.
The challenge
A large national Real Estate Investment Trust (REIT) was struggling with increased administrative burdens and insufficient insurance compliance. They faced challenges with ensuring all tenants had insurance, managing their risk, and securing competitive coverage and savings for their real estate schedules.
Their existing solutions from incumbent brokers were inadequate, leaving gaps in coverage and compliance, and resulting in increased deductibles, year-over-year insurance cost increases, and higher exposure to tenant-caused claims. Additionally, a substantial number of their tenants were uninsured, exacerbating these issues and impacting the profitability of their portfolio.
What Summit did
To address these challenges, Summit implemented a multifaceted strategy:
Deploying the compliance solution. Implemented compliance software to automate notifications for new and existing residents about tenant insurance requirements. The integration with the landlord's ERP system ensured real-time updates on tenant insurance status, reduced administrative burden, and helped achieve 100% compliance.
Advanced analytics and reporting. Used advanced analytics to track and manage tenant insurance data, including identifying policy cancellations, bad data, and fraudulent submissions, allowing for immediate corrective action.
Enhancing the risk score. Leveraged the 100% compliance status to create more attractive insurance submissions. The improved risk profile allowed Summit to secure better rates and coverage options from insurers.
The results
Enhanced risk management. Every tenant now carries insurance, reducing the company's exposure to tenant-caused claims.
Cost savings. Secured better coverage and significant savings on the company's real estate schedules.
Improved compliance program. Achieved 100% compliance with tenant insurance requirements, with automated notifications for lapsed or cancelled policies, while reducing administrative burden.
The REIT now has optimized risk management and streamlined insurance compliance. The solution ensured all tenants had insurance while providing better coverage and substantial savings, reducing administrative burden and strengthening the company's overall insurance strategy.
“Implementing our compliance and insurance solution allowed the Real Estate Investment Trust (REIT) to achieve a higher level of risk management and compliance. Ensuring that all tenants had insurance, combined with better coverage and significant savings, demonstrates the effectiveness of a tailored approach in transforming insurance strategies for large property portfolios.”