The soft rates and calm underwriting standards of the insurance marketplace have given way to volatility and uncertainty not seen in nearly twenty years. A global pandemic and financial downturn in 2020 have combined with elevated losses across the entire marketplace to create the perfect storm. Catastrophic liability claims, massive jury awards, and continued property losses caused by frequent hurricanes, wildfires and civil unrest have blended to create significant upheaval in the insurance marketplace. Insurance carriers are restricting limits, terms, and conditions. Businesses challenged by COVID-19 who are looking for financial respite are not finding it here.
With a marketplace delivering increased rates and more restrictive terms while demanding a more thorough review of underwriting information, are you prepared? Companies must engage as partners, not just bystanders, in the risk management process. With an unpredictable marketplace across many different lines of coverage, involving your entire team in the process is more important than ever. From articulating the strength of your balance sheet and business plan to summarizing fleet management improvements, insureds will need to have a firm grasp on the risk management focus within their company, and how to relay that message effectively to a hesitant insurance marketplace. Making your operations and risk management profile stand out is imperative for a successful renewal, both from an insurance coverage perspective and from a financial standpoint.
This year, it will take more than just dusting off the most recent safety manual. From Accounting to Project Supervisors to the Executive Suite, your entire team should be engaged in supporting the effort and promoting your safety culture. Underwriters will only take time for the best risks who reflect a collective focus on risk management and safety. It is vital that your organization can convey a concerted and concise message about what makes you exceptional in a sea of submissions. Your entire risk management team must engage in the process to effectively navigate an ever-evolving insurance marketplace.