3 Ways Data Can Drive Meaningful Risk Reduction in the Public Sector
It has been 33 years since Time magazine touted the headline “Sorry, America, Your Insurance Has Been Canceled.”
In the 1980s, insurance premiums were skyrocketing with no clear reprieve in sight. The industry was facing a liability insurance crisis, and the availability of certain coverages for public entities waned, leaving many without general liability.
“The risks were too high for the industry to keep insuring at that time,” said Jody Moses, Managing Director, Public Entities, Pools and Associations for Sedgwick.
“So, public entities self-insured their risks — property, general liability, workers’ compensation. They formed pools or self-insured on their own.”
The move has proven to be a good thing for this thriving sector; now, Moses said, public entities have a huge opportunity to take the knowledge and data they’ve collected over the last three decades and use it to better protect themselves against growing risks.
From airports to municipalities, public libraries and schools, public entities “face every risk conceivable,” said Moses.
“But they also have all this data from each facility. They have information on top drivers of loss and the cost of risk.”
Data collection and analysis has continued to play a huge role in the insurance industry, enabling carriers to better assess risk and underwrite policy. The challenge for public entities, however, is in learning how to best use that data.
Here are three ways in which public entities can harness their data to their advantage.
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