For many organisations, insurance is still viewed as a necessary expense, discussed mainly at renewal and often judged on cost alone. Yet this perspective overlooks the significant strategic value that insurance can bring when it is embedded within an organisation’s wider risk management approach. As risk landscapes become more complex and public service budgets remain under pressure, insurance has an increasingly important role to play in supporting resilience, informed decision-making and long-term organisational success.
Beyond financial protection
When insurance is treated purely as a procurement exercise, organisations risk missing opportunities to strengthen resilience and improve outcomes. Inadequate cover, poor understanding of risk exposures or limited engagement with insurers can lead to significant consequences, including financial strain, operational disruption, reputational damage and slower recovery from major incidents
A strong risk and insurance function should therefore focus on securing the right protection for the organisation’s needs, rather than simply the cheapest option. Effective insurance arrangements should align with risk appetite, organisational objectives and broader strategic priorities.
Unlocking strategic value
When managed effectively, insurance can create value in several important ways:
- Supporting growth and change
Insurance provides organisations with the confidence to innovate, transform services and pursue strategic objectives. By transferring key risks, leaders are better placed to make informed decisions and embrace change knowing that appropriate safeguards are in place - Driving better decision-making
Claims data can provide valuable insights into trends, behaviours and emerging risks. Analysing this information allows organisations to identify areas for improvement, target preventative measures and make more informed strategic decisions. The insurance renewal process can also encourage improvements in data quality and governance, helping organisations gain a clearer understanding of their risk profile. - Accessing specialist expertise
Insurance relationships often provide access to a much wider range of support than many organisations realise. Risk engineering, complex claims management, exposure analysis, cyber response services and construction risk expertise can all help organisations strengthen their risk management arrangements. Many insurers also provide additional risk management support and funding opportunities that are often underutilised. - Strengthening resilience
Perhaps most importantly, insurance helps organisations prepare for and recover from unexpected events. By highlighting areas of exposure and encouraging preventative action, insurance can become an important driver of organisational resilience rather than simply a mechanism for dealing with losses after they occur.
Bristol City Council: A real-world example
Bristol City Council's experience demonstrates how taking a more strategic approach to insurance can deliver tangible benefits and help organisations become a better risk.
Like many public service organisations, the Council faced a challenging insurance market alongside significant risk exposures, including those associated with high-rise cladding remediation. Against this backdrop, maintaining a strong and sustainable insurer relationship became increasingly important.
Recognising the need for change, Bristol City Council worked in partnership with Zurich Municipal and PwC to strengthen its risk and insurance function, improve governance and enhance its overall risk profile. What followed was a focused programme of improvement designed to strengthen capability, enhance governance and raise the profile of insurance within the organisation.
A key part of the transformation involved elevating insurance to a senior leadership priority. Insurance became a regular topic of discussion at Corporate Leadership Team meetings, helping to ensure greater visibility, accountability and engagement from senior stakeholders. At the same time, Zurich Municipal provided dedicated strategic support, while PwC's Insurance Strategy team worked alongside the Council to deliver improvements across processes, governance, data management and capability.
Delivering measurable results
The collaboration produced a range of measurable outcomes. The Council strengthened its internal capability through specialist recruitment, including a dedicated Insurance Finance Business Partner. New processes and governance structures were introduced, including a formal insurance process manual and enhanced reporting arrangements. Data quality improved significantly, helping build insurer confidence and providing greater transparency around risk exposures.
More than 15 years of claims data was reviewed, enabling the identification of trends, opportunities for early intervention and reductions in claims provisions. A tailored claims dashboard provided clearer oversight of priorities and performance, while stronger collaboration between Risk & Insurance and Legal Services improved operational effectiveness. The development of a formal service level agreement further strengthened these relationships.
Perhaps most importantly, the work helped create a stronger alignment between risk transfer, risk retention and the Council's overall risk appetite, resulting in a more strategic and sustainable approach to insurance.
Partnership driving success
The success of the initiative was underpinned by strong collaboration between Bristol City Council, Zurich Municipal and PwC. By combining leadership commitment, technical expertise and a shared focus on continuous improvement, the partnership helped strengthen the Council’s approach to insurance and risk management.
This achievement was recognised nationally when Bristol City Council won the Partnership Award at the ALARM Risk Awards 2026 for its collaborative work with Zurich Municipal and PwC. The award recognised the value of partnership, helping organisations strengthen governance, improve risk management practices and build greater resilience.
A strategic opportunity
Bristol City Council's experience highlights an important message for risk managers and organisational leaders: insurance should not be viewed as an annual transaction or administrative necessity. When integrated into wider risk management and strategic planning, it becomes a powerful tool for building resilience, improving decision-making and supporting organisational objectives.
In an increasingly uncertain environment, organisations that invest in their insurance capability, strengthen insurer relationships and use data to inform decision-making are better positioned to manage risk effectively and thrive in the face of future challenges. Insurance, when used strategically, can support better decision-making, stronger resilience and improved organisational outcomes.
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