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Liberty Bank cuts total cost of risk after broker transformation
The bank reorganized its corporate insurance and risk financing program through a competitive RFP and reported a 10.0% to 20.0% reduction in total cost of risk.
Liberty Bank, a Connecticut-based financial institution, overhauled its corporate insurance and risk financing program after determining it had fallen behind a more complex external risk environment, leaving leadership with limited data visibility and inadequate actionable insights, according to Risk & Insurance.
Under the leadership of Eric Singer, the bank repositioned risk management as a strategic enterprise function rather than a transactional service. The previous broker setup operated under a model that had not been competitively marketed for years, contributing to rising costs, inconsistent service delivery, and missed opportunities to optimize coverage and analytics.
Singer led a comprehensive broker transformation through a highly competitive RFP process, aligning procurement teams and executive stakeholders while maintaining uninterrupted program stability. The evaluation framework included quantitative measures such as program cost, coverage structure, and service model efficiency, along with forward-looking criteria tied to data analytics capabilities, innovation, and execution.
Risk & Insurance said the initiative delivered measurable results, with Liberty Bank reporting a 10.0% to 20.0% reduction in total cost of risk, driven by improved market competition, an optimized program structure, and better broker economics. Singer cited the gaps as a material and financial threat if left unaddressed, warning they could lead to continued cost leakage and weaker executive and board decision making.