5 Ways Using a Single Carrier Makes Life Easier for Risk Managers
Businesses purchase, on average, upwards of a dozen or more different insurance coverages to effectively address their day-to-day risk exposures. GL. Property. Equipment Breakdown. Workers’ Comp. D&O. Commercial Auto. Cargo. Environmental. And as new exposures emerge — like cyber risks — specialized coverages do too, adding to the insurance portfolio coverage tally.
To meet these insurance needs, companies have relied on multiple insurance carriers for many reasons – price, strong relationships, expertise in a specific coverage, etc. But given current broker and carrier consolidation, the pace of change and risks that seem to grow more entwined by the day, many are realizing some significant rewards from a more consolidated, cohesive approach to insurance buying.
Strong broker/client/carrier relationships that result in deep-seated knowledge of a business and its industry are proving to have a big impact on a risk management program’s effectiveness in a number of obvious and rewarding ways. Here’s how:
1) Greater Efficiencies
Insurers and brokers alike are merging to benefit from cost efficiencies, gain new capabilities and achieve scale. Like them, many risk managers are also looking for ways to streamline their processes and achieve more effectiveness while reaping the most value from their insurance buys. As result of industry consolidation, many carriers are more diverse in their product offerings, more global in their geographic scope and better capitalized, making it easier for risk managers to consolidate buying among a smaller number of insurers.
2) A Customized, Collaborative Experience
As individuals, and as businesses, we are increasingly looking for more customized buying experiences and products. Not all businesses operate the same. That’s one of the biggest benefits of buying multiple coverages from one carrier. It helps solidify the opportunity for carriers to provide their clients more personalized service to mitigate risk and more cohesive, tailored coverage.
3) More Skin in the Game
A bigger investment in any business partner lends itself to a working relationship aimed at mutual success. A client is financing more of their risk management investment with one market; therefore, a carrier invests more of its resources and attention to a client’s needs and experience.
4) Deeper Mutual Understanding
When tasked with covering more of a client’s risks, carriers can get a bigger, clearer picture of a company’s exposures and develop appropriate risk mitigation strategies. The more we know, the better spot we are in to leverage the right expertise and resources to address risks across an organization.
5) Claims Advantage
Managing a claim can be challenging when multiple carriers are involved. Working with fewer carriers can often eliminate potential conflicts, speed up resolution time, and allow for more client/claims team collaboration.
For an insurer, achieving a deep understanding of our clients helps us achieve more for them. For our clients, managing fewer carrier relationships can boost efficiency and improve risk management effectiveness in a variety of ways – from managing claims to easing the renewal process to lessening the potential for coverage disputes. It’s a win-win all around. &