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Finding the right fit with a flexible portfolio insurance programme

One of the most common misconceptions about portfolio insurance programmes is that they follow a rigid, one-size-fits-all model.
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By Alexander Ackermann , 

North America Private Equity and M&A Services Practice Leader

22/07/2025 · 2 minute read

One of the most common misconceptions about portfolio insurance programmes is that they follow a rigid, one-size-fits-all model. The truth is, however, that the best portfolio programmes are intentionally designed to be flexible — scalable across industries, adaptable to different operating models, and customisable to reflect the nuances of each firm’s strategy.

Private equity portfolios are rarely uniform, often encompassing a diverse range of companies with varying needs. A single fund might include a healthcare company with strict regulatory demands, a fast-scaling tech firm with global exposures, and a manufacturer that needs to manage physical risks that could impact its plant operations. While a standardised programme can offer consistency, without flexibility it may not provide the desired cover for the risks that matter most.

How does a flexible portfolio programme deliver value?

Private equity firms that consolidate policies across the portfolio often have the opportunity to secure improved pricing, broader coverage terms, and more efficient risk management. A flexible portfolio programme builds on those benefits, allowing companies to maintain the advantages of consolidating policies while introducing customised solutions to meet individual companies’ particular needs.

Understanding the specific requirements of each portfolio company is integral to building an insurance programme that provides the desired cover. The benefits of a flexible portfolio programme include:

  1. Customisation by industry and risk profile: Each industry comes with its own regulatory requirements, key risks, and risk tolerance. A flexible programme adapts according to those distinctions. Whether it's medical liability in healthcare, cyber exposure in tech, or supply chain risk in manufacturing, the structure can be tailored accordingly — without losing the benefits of aggregation.
  2. Operational alignment: No two operating teams are the same. Some want a hands-on approach; others prefer to delegate. A flexible portfolio programme adapts to the level of control individual portfolio companies want or need. Firms can centralise procurement while preserving autonomy where it makes sense.
  3. Balance between standardisation and customisation: Standardising processes — such as renewal timing and coverage terms — helps unlock efficiency. Flexible programmes allow firms to adjust deductibles, limits, or coverage lines based on the needs of specific businesses. That balance is where real value lies — aligning enterprise-wide discipline with business-specific nuance.
  4. Strategic scalability: It is often easier to integrate new portfolio companies into an existing flexible insurance programme. The programme can expand to include new portfolio companies, with tailored onboarding processes and risk assessments that don’t disrupt operations or delay value capture.

Tailored solutions for diverse portfolios

Portfolio insurance programmes aren’t off-the-shelf products — they are frameworks. When built with flexibility in mind, they can scale across sectors, adapt to evolving risk profiles, and align closely with operational goals. Flexible insurance programmes are also suitable for complex portfolios because they can be adapted according to the individual needs of your portfolio companies.

The key to building a robust and scalable flexible insurance programme is partnering with an insurance adviser that understands how you can strike the right balance between efficiency and customisation — helping to deliver value across the full lifecycle of the portfolio.

For more information on how Marsh can help you find a tailored insurance programme for your portfolio of companies, contact your Marsh representative.

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