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Why portfolio programs aren’t solely for the big players

Portfolio insurance programs are often associated with large private equity firms with extensive holdings.
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By Heather Partridge , 

SVP and Portfolio Manager, Marsh PEMA

08/25/2025 · 3 minute read

Portfolio insurance programs are often associated with large private equity firms with extensive holdings. However, portfolio programs can be just as valuable, if not more, for smaller firms and boutique funds.

Whether you manage a dozen companies or just a few, a portfolio approach to insurance can bring meaningful benefits. By consolidating policies across the portfolio, you may be able to access improved pricing, broader coverage terms, and more efficient risk management.

Further, it creates opportunities to streamline insurance processes and create a more cohesive strategy across all portfolio companies.

Unlocking value through a portfolio program

Smaller firms may assume they don’t have the scale to take advantage of the efficiencies associated with portfolio insurance programs. This, however, is often a mistaken assumption. In fact, bringing structure to even a small portfolio can help uncover savings and reduce administrative complexities.

Additionally, a unified approach can provide better visibility into exposures, enabling smarter decisions and more proactive risk mitigation.

Key benefits of a portfolio insurance program

  • Potential premium savings
    By drawing on the aggregated purchasing power of your portfolio companies, you may be able to secure broader coverage at significantly lower costs. While savings vary, firms typically realize premium reductions compared to individual policy placements.
  • Enhanced risk visibility
    Consolidating policies provides centralized data and reporting, improving visibility into aggregate exposures and enabling more targeted risk-mitigation strategies across all portfolio companies.

Overcoming common hurdles

While there are clear benefits to portfolio insurance programs, smaller firms may face challenges when implementing this approach. Common concerns include:

  • Initial setup costs: Smaller firms may worry about the upfront costs associated with consolidating their insurance policies. However, these costs can often be offset by the long-term savings achieved through improved pricing and efficiency. Additionally, many insurance providers offer flexible payment options that can ease the financial burden during the transition.
  • Complex implementation: The process of consolidating multiple policies into a single portfolio can seem daunting. To mitigate this, you can work with experienced insurance brokers or consultants who specialize in portfolio programs. These professionals can guide you through the process, focusing on maintaining all necessary coverage as you consolidate your standalone programs into a portfolio approach.
  • Tailoring coverage to diverse needs: Depending on their industry or business model, companies face unique risks. A one-size-fits-all approach is often not effective. An experienced insurance advisor or broker can help you to customize your portfolio program to address your specific exposures while still benefiting from the efficiencies of a consolidated approach.

By proactively addressing these challenges, smaller firms like yours can successfully implement portfolio insurance programs that enhance your risk management strategies and drive significant cost savings.

If you're considering a portfolio program and want to better understand whether it would make sense for your firm, our team of specialists can answer questions and help guide you through the process. We understand that there’s no one-size-fits-all solution and will work with you to develop a tailored portfolio approach focused on driving cost savings, improving coverage, and boosting overall efficiency for your fund — regardless of its size. 

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