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Why mandates aren’t the answer for portfolio programmes

A common misconception is that private equity sponsors need to require every portfolio to join a unified insurance programme.
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By Katherine Gensheimer , 

Chief Client Officer, PEMA North America

11/08/2025 · 3 minute read

A common misconception is that private equity sponsors need to require every portfolio company to join a unified insurance programme. In reality, the most successful programmes rely on value — rather than compulsion — to drive participation.

When portfolio companies see the tangible benefits of a unified insurance programme — such as better pricing, broader coverage, and streamlined administration — they are often more willing to opt in. This voluntary approach can preserve autonomy, strengthen sponsor-manager trust, and boost long-term engagement.

Key benefits at a glance

By leveraging relationship capital and clear communication, sponsors like you can introduce a platform that stands on its own merits and provides multiple benefits, including:

  • A value-first platform. When properly built and effectively maintained, a unified insurance platform can deliver measurable savings, enhanced policy terms, and centralised reporting.
  • High voluntary adoption rates. Clear value propositions and ongoing engagement can lead to participation rates of well above 80%, achieved without mandates. High levels of voluntary participation reflect the effectiveness of a value-driven approach.
  • Significant cost savings. Portfolio companies typically enjoy substantial cost savings by aggregating their risk and leveraging collective buying power. While savings can vary, the benefits of a unified insurance programme often include enhanced coverage and reduced administrative burdens.
  • Ongoing support and education. Regular data insights, benchmarking, and risk-management resources help portfolio companies make the necessary changes to maximise the return on investment (ROI) of their participation in a programme. Data helps companies understand the evolving landscape of risks and the importance of proactive risk management.

Expanding the value proposition

To further enhance the appeal of portfolio programmes, sponsors can consider the following strategies:

  • Invest in tailored solutions: Recognising that each portfolio company may have unique needs, consider working with insurance providers to customise coverage options that align with specific business risks. This tailored approach can increase the perceived value of participation.
  • Produce success metrics: Establishing clear metrics to measure the success of the insurance programme can help demonstrate its value to portfolio companies. Regularly sharing these metrics can reinforce the benefits of participation and encourage ongoing engagement.
  • Foster community engagement: Creating a sense of community among portfolio companies can foster collaboration and knowledge sharing. By facilitating networking opportunities and discussions around risk management best practices, sponsors can enhance the overall value of the programme.

In a landscape where effective risk management is paramount, embracing a voluntary, value-driven approach to portfolio insurance programmes not only empowers individual companies but also strengthens the entire portfolio. By prioritising value over mandates, you can cultivate a culture of trust and collaboration that drives long-term success for all stakeholders involved.

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This publication is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. The information contained herein is based on sources we believe reliable, but we make no representation or warranty as to its accuracy. Marsh shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Any statements concerning actuarial, tax, accounting, or legal matters are based solely on our experience as insurance brokers and risk consultants and are not to be relied upon as actuarial, accounting, tax, or legal advice, for which you should consult your own professional advisors. Any modelling, analytics, or projections are subject to inherent uncertainty, and any analysis could be materially affected if any underlying assumptions, conditions, information, or factors are inaccurate or incomplete or should change.

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