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Risk Insider: Warren Berey
‘Easy’ Is Rarely ‘Right’
Warren Berey is SVP of Multinational Insurance at Generali Global Corporate & Commercial U.S.A., overseeing the development of international casualty and package insurance solutions for U.S. companies and U.S. subsidiaries of foreign companies. He can be reached at [email protected]
There’s a right insurance solution for every buyer. Finding it becomes a matter of making sure all parties in the buying decision are aligned on what “right” means.
Many companies are, unfortunately, focused on finding the cheapest solution and are therefore willing to change their programs as often as necessary to maintain the lowest price point. While this may seem reasonable up front, it misses out on the real point of buying insurance.
Buyers shouldn’t look at insurance as merely an expense item on their income statement, but rather a safeguard for when something goes wrong. Granted, we all hope nothing ever goes wrong, but if it does, that’s when you truly know if you’ve made the “right” decisions.
So, what does “right” look like if you are not solely focused on price? The answer, or course, is: “right” is in the eye of the beholder.
If you value your company, you should look for an underwriter who values theirs. And, more importantly, an underwriter who is willing to value yours at the same level that you do.
No two companies are exactly the same, and insurers that try to fit yours into a specific box or formula won’t be able to manage a steady continuity of your program when losses arise. As a multinational company, you should be partnering with a global insurance organization who truly understands the importance of operating on a global scale.
If you value your company, you should look for an underwriter who values theirs. And, more importantly, an underwriter who is willing to value yours at the same level that you do.
Recognizing your underwriter’s understanding of your company may seem difficult to measure – but the best way to do so is to ask your broker to meet your underwriter (if your underwriter hasn’t already asked to meet you). Is your underwriter experienced at evaluating company risk and structuring long-term solutions?
If you have been with the same insurer for a while, have you had the same underwriter? Has the insurer’s management team remained intact? Companies that remain consistent to the same core strategies are usually more successful over time at developing risk expertise, which will come in handy later when you truly need it.
So, let’s not evaluate insurance solutions by prioritizing what comes easy. Instead, build personal value by looking closely at your company’s potential exposure to future claims and find an insurance solution from an underwriter that shares your philosophies and values, takes the time to get to know you, and has the staying power and focus to be with you — especially during the most difficult times.
