Brokers attending the British Insurance Brokers’ Association (BIBA) 2016 conference will be acutely aware of how their clients’ insurance programmes address a growing range of tangible and intangible risks.
In June 2015, a RIMS Survey predicted the widespread purchasing of cyber cover within two years with respondents highlighting reputational harm (79 percent), business interruption (78 percent), and data breach response and notification (73 percent) as their top three exposures.
Competition is fierce, and these programmes have to be highly responsive to face down a growing range of alternative options in the risk transfer toolkit.
One element that may be overlooked is claims handling protocols, which at the moment of loss incorporate who speaks with whom, how everyone responds, the service level agreements, fee arrangements and so forth.
It’s important that these protocols are in place and have been agreed upon from the outset of a claims event.
But like any rulebook, being a slave to your principles can be a rod for your back. We always need to remain pragmatic and customise to a particular event or challenge. The skill of a senior claims manager at an insurer or broker is to ensure that solutions are sought. This may mean that the claims protocol document isn’t always to be followed to the letter and a more entrepreneurial stance is taken towards achieving quicker settlement.
Ultimately, we are being judged on our ability to meet the expectations of demanding clientele. The challenge is to deliver an integrated solution that matches and exceeds those expectations. One area we can do this is by demonstrating a nimble footing in relation to emerging risks that constantly threaten a corporate’s position.
Cyber breach network response, directors and officers liability, and contingent business interruption are coverage areas where insurers offer untouchable risk transfer solutions, but these scenarios must be dealt with by a claims approach that emphasises people management and accountability.
Companies with the technical range, plus management that understands the full spectrum of challenges corporates face should be well-placed to thrive in this environment.