Deloitte has launched a new tender management service to help organisations select an appropriate insurance broker to meet their specific risk management needs. Headed by former corporate broker Claudio Battilana, the service is currently only available in Sydney and Melbourne, but there are plans to expand Australia-wide.

Mr Battilana says he developed the service in response to the tighter market and the growing complexity of business insurance policies. He says brokers have been “positive and supportive” of the idea so far.

“Savvy brokers will take the opportunity to review and improve their offering to corporates, to increase their chances of winning tenders,” he said. “The tender management service should also prompt an increase in the use of service-level agreements by brokers in the industry.”

He says he expects the greatest demand for the service to come from organisations with public and professional liability exposure as well as from the community care and food and beverage industries.

“The majority of organisations in Australia lack the dedicated resources to effectively manage their business insurance tender process in-house, which has created demand for the tender management service,” Mr Battilana said.

Deloitte says the methodology in which the service was created is based on the tender management services developed eight years ago by Australian Superannuation Advisory Services, which built a similar service in the superannuation industry. Deloitte has bought the exclusive rights to the methodology for the business insurance market.

“I expect our business insurance tender management service will be adopted by a significant number of Australia’s top 500 companies by the end of next year,” Mr Battilana said.