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An auto warranty services organization faced rising costs, limited coverage and low employee satisfaction with their benefits program, creating financial strain and dissatisfaction among employees.

Seeking a comprehensive solution to reduce expenses while enhancing both benefits and risk coverage, they partnered with Gallagher to revamp their approach.

Case Study

Client Profile

Industry

Auto Warranty Services


Number of employees

1,600, expected to be 2,500 by Q1 2025


Geographical region

Midwest

Gallagher's tailored solution

The team leveraged Gallagher Drive®, equipping the organization with databacked insights to analyze, benchmark and optimize its benefits and risk management programs.

This dual-focused solution identified opportunities for cost avoidance, allowing the organization to reinvest in enhanced benefits and a cohesive risk management package, creating a more sustainable approach for long-term success.

Results and benefits

The data-driven results had benefits in three key areas:

Enhanced benefits and significant cost savings

By transitioning from a fully insured model to a self-funded approach, the organization achieved $700,000 in cost savings in the first year. They reinvested these savings into a more competitive benefits package. The enhancements led to a significant boost in employee satisfaction and engagement, with more than 80% of employees enrolling in the improved benefits plan.

Expanded risk management coverage

A portion of the cost savings from the data analysis was reinvested into expanded risk management programs, strengthening the organization's ability to mitigate potential exposures. This strategy ensured greater protection and stability, better equipping the organization for continued growth.

Future-focused strategy

Data-driven insights identified priorities to further expand benefits and risk management coverage by 2025. Enhancements will include expanded medical and ancillary benefits, additional voluntary options and worksite products, helping the organization maintain its competitive edge in the labor market.

Estimated cost savings

Through Gallagher Drive®, the company is projected to save up to $2 million in costs while simultaneously expanding both benefits and risk coverage over the next three years.

Contact your Gallagher consultant to learn how Gallagher's data-driven approach can help your organization.

Disclaimer

This case study is based on an actual client situation but is meant for informational purposes only. The case study is in no way intended to be used as a primary basis for benefits, fiduciary, or securities decisions. Similar results are not guaranteed and will vary based on the individual client situations. You should consult with financial, tax, legal, and accounting advisors before implementing any plan or course of action. Neither the information presented nor any opinion expressed constitutes a contract or a solicitation for the purchase or sale of any product. Consulting and insurance brokerage services to be provided by Gallagher Benefit Services, Inc. and/or its affiliate Gallagher Benefit Services (Canada) Group Inc. Gallagher Benefit Services, Inc. is a licensed insurance agency that does business in California as "Gallagher Benefit Services of California Insurance Services" and in Massachusetts as "Gallagher Benefit Insurance Services." Neither Arthur J. Gallagher & Co., nor its affiliates provide accounting, legal or tax advice.