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Cutting SharePoint Storage Costs: An Insurance Firm Case Study

Published: 27 June 2026  |  Category: Storage Management

Priya's storage alert arrived on a Wednesday. Three weeks before the Microsoft 365 renewal, the SharePoint quota for Meridian General Insurance's tenant had hit 91 percent. The renewal quote on the table included an upgrade to the next storage tier. Priya wanted to know whether a focused cleanup could avoid that cost before signing.

Meridian is a mid-size general insurance company with around 350 staff. The Microsoft 365 environment had been running without any formal storage governance since 2019. No version limits had ever been set on any library. The claims administration team had been uploading scanned documents directly to SharePoint since early 2020. The IT team had a rough sense that version history was probably the culprit but had never run a report to confirm it.

What the initial audit revealed

Priya's first step was understanding where the storage actually lived. She used Report Master to export a per-library storage report across Meridian's 22 SharePoint sites. The results came back as an Excel file listing each site's libraries with file count, version count, and storage consumed.

Site / Library Total storage Estimated version storage Planned action
Claims Admin / Scanned Documents 18.4 GB ~3 GB Image compression
Policy Templates / Working Documents 14.1 GB ~11 GB Version trim (400+ versions on 12 files)
Underwriting / Active Submissions 9.7 GB ~5.2 GB Version trim
HR / Policies and Procedures 6.8 GB ~5.1 GB Version trim (high edit frequency)
All other sites (18 combined) 12.6 GB ~4 GB Light trim and empty folder removal

Total tenant storage at audit time: 61.6 GB. Version history alone accounted for an estimated 28 GB. Image files in the claims site made up most of the remaining overage. Four sites were responsible for the bulk of the problem. That focused Priya's plan immediately and kept the cleanup project to a manageable scope.

Cutting version history across the high-traffic libraries

The Policy Templates site was the standout finding. Twelve files in the Working Documents library had each accumulated more than 400 versions. These were template documents that multiple staff checked out, edited, and checked back in repeatedly over five years. Nobody had ever set a version limit on the library. The files themselves were small Word documents, but each carried hundreds of historical drafts that had never been pruned.

Note: Before trimming any versions, export a report showing current version counts and confirm with your compliance team that no regulatory retention policy requires specific historical versions to be kept. For an insurance company operating under prudential or financial services regulations, document version retention may be subject to specific requirements. Priya confirmed with Meridian's legal team that general policy templates were not subject to document version retention rules before proceeding.

Using Space Master's Version Trimmer, Priya ran a version trim across the Policy Templates, Underwriting, and HR sites. She set the "keep at least" value to 10 versions per file, meaning files with fewer than 10 versions were left completely untouched. Files carrying hundreds of versions had all but the 10 most recent removed. The operation ran overnight. Storage recovered from those three sites alone exceeded 18 GB.

She then applied a lighter trim to the 18 smaller sites, using a keep-at-least value of 15 versions since those libraries had lower edit frequency and the storage gain was smaller. The process required no scripting and no connection to the SharePoint Management Shell.

Compressing 22 GB of claims images

The Claims Admin site presented a different problem. The Scanned Documents library held roughly 9,400 image files: JPEGs scanned by the claims processing team from paper forms, damage assessments, and correspondence. The scanner defaults had been configured at 300 dpi with no compression, producing file sizes between 4 MB and 15 MB per scan. For documents read on screen and never reprinted at high quality, this resolution was excessive.

Space Master's Image Reducer compressed the files in the Scanned Documents library in a single operation. The tool applies configurable JPEG compression to image files stored in SharePoint, reducing file size while keeping the files in place with their metadata, version history, and sharing permissions intact. Priya set the quality level to 75 percent, which reduced average file size from approximately 7 MB to under 2 MB without any visible quality loss for on-screen document review.

The claims library shrank from 18.4 GB to just under 5 GB. That single operation recovered more storage than any individual version trim run.

Clearing empty folder debris from legacy sites

The 18 smaller sites had a secondary problem: a large number of empty folders left behind from previous project structures, document reorganisations, and a migration from a legacy document management system in 2022. Empty folders consume negligible storage on their own, but they clutter navigation and make audit reports harder to interpret.

Space Master's Empty Folder Remover identified 847 empty folders across those 18 sites. Priya removed them in a single pass. She also used Bulk Delete to remove two decommissioned project sites that had been left active with no content, returning their site-level allocation to the tenant pool.

The outcome and what came next

By the end of the week, Meridian's SharePoint storage had dropped from 61.6 GB at 91 percent to 27.3 GB. The tenant was well within its existing quota tier. Meridian pulled the storage upgrade from the renewal discussion. The Microsoft 365 contract renewed at the same tier as before.

Beyond the immediate result, Priya put two governance changes in place to prevent the same backlog from building again.

First, Priya set version limits on all major libraries: a maximum of 50 versions for general document libraries, 100 for libraries holding regulatory documents. SharePoint's own versioning settings enforce these limits on new versions going forward, which structurally fixes the accumulation problem rather than relying on periodic manual cleanup.

Second, IT updated the claims scanning workflow to reduce scanner output to 150 dpi with moderate compression for new scans. Combined with the Image Reducer pass already completed, the claims site now adds roughly a quarter of the storage per month it was adding before.

A quarterly version trim is now scheduled in ShareMaster for the five highest-traffic libraries. With version limits in place, the trim is a light maintenance run rather than an emergency recovery project. For the full step-by-step process, see the guide to trimming SharePoint version history.

Frequently Asked Questions

How much storage does version history use in SharePoint Online?

Version history storage depends on how frequently files are edited and how many versions are retained. In tenants without a version limit set, version history commonly accounts for 40 to 70 percent of a document library's total storage. Template files and policy documents edited frequently by multiple users accumulate the highest version counts fastest.

Can I reduce SharePoint storage without deleting any current files?

Yes. The two largest sources of recoverable storage are version history and oversized image files. ShareMaster's Space Master Version Trimmer removes old versions while keeping all current files intact. The Image Reducer compresses images stored in SharePoint without removing them. Both operations recover storage without touching any active document or current file version.

Is it safe to trim SharePoint version history?

Yes, with preparation. Before trimming, export a version count report and confirm with your compliance team that no retention policy requires specific historical versions to be kept. ShareMaster's Version Trimmer lets you set a minimum number of versions to keep per file, preserving recent history while recovering the storage consumed by older drafts. For regulated sectors including insurance and financial services, check regulatory requirements before running any version cleanup.

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