More than a paper policy
Too many businesses realize the value of their insurance coverage only after the fact, after they lose something first. That means too many are missing out on reaping the full value of their insurance programs. At the same time, that means that we, as insurers, need to step up our game to make sure that they do.
Of course, insurance claim pay-outs have helped many recover, rebuild and get back to business. That aspect of insurance is not going to change. But we need to show our clients how much more we can do. We need to showcase the additional value that insurance, and those of us who provide it, bring to the table.
It’s time to change the perception that insurers only step in when our clients have filed a claim, when something is broken, or when they need the financial assistance to fix it.
Shifting the model
This shift in our business model – to evolve the insurer/insured relationship into a partnership – hinges on our desire to provide comprehensive risk management solutions and raise insurance up to be a service that can lower overall costs, preserve reputation, support financial and operational business goals and more.
Today’s global economy and operating environment supports this concept. Business is increasingly complex, constantly changing and more connected than ever. Few want to go it alone or can do the heavy lifting themselves when there’s more to know than what they can get at from their vantage point.
As someone who started in this industry as a risk engineer, I can tell you moving from what has been the traditional “repair/reimburse-after-an-event” model to a more “predict/prevent-before-an-event-even-occurs” model is a natural transition at an opportune time.
With increasingly severe weather patterns, more global volatility, growing cyber concerns – you name it – there are huge reasons for companies to reinforce preparedness and pay closer attention to predictions that could help them avoid potential risk altogether. This is where this evolving insurance business model is intent on delivering.
Carriers, like AXA XL, are boosting their risk engineering/loss prevention, data analytics, crisis management and other capabilities to gain better control over the risks that we, as insurers, assume or the risks that we can help our clients avoid. We’re helping more clients address their exposures head-on, not waiting around for something to happen.
What you need, not what we think you need
An evolution has to start somewhere. For insurance, there is no better place to start that with the paper, the actual insurance policy. In many respects, insurance coverages have to evolve in order to include broader, more comprehensive coverage and policy terms.
Listening is central in developing appropriate insurance protection. What clients say they need and what comes out of a discussion can be two different things. That’s why we make regular dialogue a habit. We listen to their concerns, struggles, and ask about what they see on the horizon. They help us understand what is truly needed from an insurance partner perspective. Then we can come up with ideal ways to support them with insurance coverage and supplementary services to help avoid potential risks and evade subsequent losses.
We’ve seen how a simple driver training program has helped clients lower their auto fleet claims; or how advance preparedness ahead of a storm can have great impact in minimizing damage; or how employee education can go a long way in thwarting a hacker. Combining this insights with the information insurers are privy to, we can provide the right support needed and develop new or adapt current approaches and offerings. That’s how we’ll know we are meeting businesses risk needs now and in the future.
Access to intel
Insurance has always relied on information to make our underwriting decisions. It’s key to predicting and preventing. So, wouldn’t it be valuable for our clients to have it too? We’re constantly looking at how we can share more of the right information effectively to better our clients’ loss prevention efforts.