NGP started acting for Iceland in 2012 and have to date due to our joint process with Iceland’s Property Team of making Iceland’s landlords premium data available to all Iceland’s landlords seen over 230 reductions in premiums . In other words Iceland’s own landlords have used the data built up from all the invoices and certificates already sent to Iceland to negotiate more competitive premiums. This has meant Iceland has been charged £412,000 less per annum than before this exercise and for the 230 sites where premiums have gone down this amounts to a 28% reduction– all due to greater transparency and competition – NGP in partnership with Iceland simply act as a provider of information already submitted one by one to Iceland by its landlords – but because NGP data input all this information and make it available in an easy to see format for landlords – they can better see if their broker is negotiating competitive premiums or if not how far away they are from the average achieved by similar landlords. Iceland send over for NGP to record the premiums for 20 insurance demands a fortnight – NGP speak directly with Iceland’s landlords to query premiums that seem to be out of kilter. We are purely looking at pound notes and pence per £100 of risk and do not comment on the policy or insurance detail – we are simply asking the same questions that you would ask – and if a premium is statistically expensive when compared with other landlords we will ask why. Upon being given a reasoned explanation we would recommend the invoice is paid. Expensive premiums where no real reason for the higher level being charged is apparent -then we ask that the landlord asks his broker to review the rating applied. Ideally we have this conversation for Iceland in advance of renewal so that the other rates negotiated by other landlords can be used in a constructive way to bring about premiums in the same range as other landlords.
The process works well – and Iceland are pleased with our results. You could carry out this same process yourself – it does need time to input all the data and also a good electronic calendar to remind yourself to send out latest premium statistical summaries for your own leased estate to your landlords 3 months before renewal and to then call them to remind them to speak with their broker and to ask that they present the data provided in the hope that their broker ( who is the expert paid to negotiate fair and reasonable premiums on his clients behalf) can do so to good effect. Ultimately the insuring liability lies with most landlords – and so helping your landlord to act diligently is what NGP do on behalf of the commercial tenant who lets remember pays the bill here even though it is negotiated by others – it seems only logical really that given you as a tenant of lots of properties get to see more insurance premiums than your landlord – so sharing this data with them must be helpful?.