Understanding risk profiles
Similar to optimizing your workflows, brokers, agencies, and insureds can benefit from having a deep knowledge of all aspects of their business. Gaining a better understanding of risk profiles may sound daunting, and it might be, but it doesn’t have to be wholly consuming. Whether you’re a broker needing a better understanding of your insureds’ profiles, or you’re an insured evaluating exposure related to third parties you work with, understanding your risk is a great place to start. Appropriately assessing risks and creating risk profiles of all involved insureds and 3rd parties will help develop a full risk profile. Take a look at past scenarios that cost you money or those that saved you money. What went wrong? What went right?
Insureds…not “one size fits all”
Leveraging your internal teams can aid you in understanding exactly how much you know. Nobody knows your business better than you, so why not use that to your advantage? There is no one type of risk; risks change by company, industry, size, geography, and so much more. Something that works for one will most likely not work for the other. Each line of coverage will be different and a blanketed approach will not suffice for each profile. If you’re working with a broker, perform the due diligence necessary to understand the differences and apply the appropriate amount of coverage for that profile.
Let’s take the next step
- Work with team members to evaluate risk in every place you can think;
- use your newly improved workflows (and maybe a new risk mitigation platform) to get things done quickly and efficiently;
- ask about the services or products provided/exchanged to gain a clear understanding of potential exposure;
- ensure you know all interactions, nuances, and all other parts of the insurance process for this particular business;
- be transparent with past mistakes and successes;
- own what you can, where you can.
Lately, it seems that the world is changing while new technology and innovations are being released by the hour. In the insurance world, companies of all types are beginning to innovate for prevention. Technology like Gamification, wearable tech, and fleet management tech are helping to minimize the end cost of potential claims, or prevent them altogether.