With ever increasing, cyber security concerns, growing political volatility, severe weather and other threats, companies continue to invest in their risk preparedness. We can see that insurers and insured are changing the way the insurance business is done. Where once the process was of repairing and reimbursing insureds after a loss or damage was standard practise, more and more are now investing in ways to predict and prevent losses and damage in an effort to better meet the demands of their clients.
The relationship between insurer and insured is moving from commoditised risk transfer to collaborative risk mitigation. This is made possible thanks to advancements in technology and therefore, data analytics is driving insurers’ efforts to better serve clients.
The fact that its shifting from repair/reimburse to prevention is good for everyone in this industry. The customer gets a better client experience, the carrier can price more accurately and the broker can reinvest in businesses that explore and add value for the customer’s benefit. This approach also has a big impact on the future of the industry. For one, it has the potential to help us attract new and different talent that brings new insights to the industry that can continue to evolve in this ever changing environment.