Strengthening Relationships with Risk Management

Brokers and agents often encounter clients whose businesses expose them to particularly complex and dynamic risks—placing them outside of the standard market appetite.

When faced with the challenge of a hard-to-place risk, brokers must understand the exposures their clients face, turn to trusted partners to create tailored coverage solutions, and know the mitigating actions clients can take to reduce losses.

Insurance Market Source connected with Michael Jarcew, Executive Vice President & Director of Risk Services North America at Afirm, a premier provider of premium audits, inspections and risk solutions, to advise brokers on how to better understand their client’s exposures and mitigate risks—strengthening their overall relationship.

Site Assessments

It is in the best interest of a broker to understand as much about their client’s exposure as possible in order to prepare, safeguard, and ensure their long-term insurability.

Risk mitigation consultants can help shed light for brokers by conducting site surveys to gather specific underwriting information, hazard identification and hazard control measure recommendations—summarized into one single document.

Brokers and agents that take the time to educate themselves on deeper issues that can affect their clients’ insurance policies will only prove to be a stronger partner.

“Complex risks are generally written more conservatively, and less information can provide limited quotes,” said Jarcew. “Without a site survey, policies may be written based on generic information with details from websites and brochures.”

Brokers and agents that take the time to educate themselves on deeper issues that can affect their clients’ insurance policies will only prove to be a stronger partner.

Loss Prevention Measures

Legal issues cost small businesses more than $100 billion each year in the U.S. and General Liability claims can average more than $75,000 per case to defend and settle. When a client has experienced a series of losses, appetite for coverage decreases across the board. In cases like this, loss prevention measures can be implemented to avert and avoid future losses.

Interdependent organizations—businesses owned by a holding company that buy or sell from one another—and those working in new industry segments–like cybersecurity–have similar needs. In each case, appetite from carriers lessens—whether it is due to the number of exposed facilities, a constantly changing industry, or even a large amount of losses.

“If prospective clients are significantly difficult for brokers to place, collaboration with risk mitigation consultants can assist in identifying organizational exposures to manage or eliminate those risks—resulting in fewer claims and making a business much more insurable,” said Jarcew.

Money Savings

A risk mitigation firm can conduct site surveys for risk control purposes, plan loss prevention strategies, or tailor an approach to other exposures, including worker’s compensation.

With reliable, consistent evaluations, brokers can better understand the exposure their clients face, ensure proper coverage and risk management solutions—resulting in greater client satisfaction and retention.

It not only speeds up the underwriting process, but can potentially help the client save money in the long run.

References:

  1. Tech Insurance
  2. Insurance Journal

Click here to learn more about Site Surveys.