Amid continued macroeconomic uncertainty and growing concerns about a potential recession, private equity (PE) firms are placing greater emphasis on value creation within their existing portfolios. With new deal activity slowing, the spotlight has turned to optimizing performance, streamlining cost structures, and enhancing the resilience of portfolio companies. One high-impact yet often underutilized lever in this effort is the establishment of a centralized, portfolio-wide insurance strategy.
While centralized programs can be applied across various insurance lines, they are particularly effective in areas such as executive risks insurance — including directors & officers (D&O) liability, employment practices liability (EPL), fiduciary liability and crime — as well as cyber liability insurance. By consolidating the insurance needs of all portfolio companies, PE firms can leverage the collective scale of their portfolios to obtain significantly improved pricing as well as broader terms and coverage — advantages unattainable by individual companies alone. Beyond cost efficiency, a centralized insurance model delivers a critical strategic advantage: consistent, PE-led risk management across the platform. In today’s volatile environment, this level of operational control allows firms to proactively manage exposures and drive better-than-market outcomes. These results reinforce the value of the program to both portfolio companies and deal teams, demonstrating why alignment with a unified strategy far outweighs the fragmented approach of standalone engagements.
This approach not only strengthens individual portfolio companies’ risk management frameworks, but also enhances operational performance, protects critical assets, and delivers measurable financial benefits to the PE firm. A centralized portfolio program empowers firms to think strategically and act tactically—linking risk decisions directly to overarching corporate objectives. By aligning risk management with enterprise strategy across the portfolio, PE firms can drive cohesive, value-accretive outcomes.
Without a coordinated strategy, insurance procurement is typically handled at the portfolio company level. Each business negotiates its own policies without access to the negotiating leverage that comes from being part of a PE-backed group. This decentralized approach can lead to:
A structured, sponsor-led insurance strategy adds value throughout the entire insurance lifecycle — from original policy placement and pricing to claims management and renewals.
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Key benefits of a centralized portfolio insurance program
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As private equity firms navigate economic headwinds and prioritize portfolio resilience, centralized insurance programs offer a compelling strategic advantage. These programs drive cost efficiencies, reinforce risk management and generate long-term value. By taking a proactive, coordinated approach to insurance procurement, PE firms can better protect assets, elevate governance standards and sustain a competitive edge — both in challenging market conditions and over the long-term growth of their platforms.
Willis, a WTW business, has been at the forefront of innovation in establishing portfolio purchasing programs for PE firms. Over the past two decades, we have implemented and managed more than 100 insurance portfolio programs focused on executive risks and cyber liability.
Following a competitive RFP process, Willis was engaged to design and implement a comprehensive, portfolio-wide management liability solution for a U.S.-based middle-market private equity sponsor with a diverse portfolio of more than 30 companies spanning multiple industries.
Through a strategic and coordinated rollout, Willis delivered a single-carrier program that:
The result was a bespoke policy with enhanced, above-market coverage terms tailored to the sponsor’s unique risk profile. Beyond the immediate cost savings, the structure of the program generated more than $1.2 million in cumulative premium savings over a three-year period. Additionally, the centralized program also delivered superior claims outcomes. Several portfolio companies recovered under the D&O coverage where prior standalone policies would have excluded such claims – including a notable $15 million antitrust settlement – highlighting the value of a strategic, portfolio-level insurance approach.
Our team of 30 highly skilled insurance brokers is dedicated exclusively to serving PE firms and their portfolio companies. With technical expertise and backgrounds as underwriters or attorneys, we deliver differentiated, cutting-edge insurance solutions tailored to the unique needs of the private equity industry. By understanding the process from the inside out, we anticipate challenges, navigate complexities and proactively secure the best outcomes for our clients.
If you have any questions about portfolio programs and want to learn more, please reach out to a WTW colleague or contact us here.
WTW hopes you found the general information provided here informative and helpful. The information contained herein is not intended to constitute legal or other professional advice and should not be relied upon in lieu of consultation with your own legal advisors. In the event you would like more information regarding your insurance coverage, please do not hesitate to reach out to us. In North America, WTW offers insurance products through licensed entities, including Willis Towers Watson Northeast, Inc. (in the United States) and Willis Canada Inc. (in Canada).
