The value of an insurance broker in a toughening market
Published 31 May 2018
Consumers should take a lead from how insurers are dealing with toughening market conditions, says Gallagher’s Chris McKeown, as reported in Business Acumen Magazine. “Shopping around for a broker with experience in your industry and insight into your professional needs will pay off when you need to claim.”
He ascribes this to the flow-on effect of international insurance markets’ reaction to global disaster insurance losses in 2017 which, after a year of catastrophic weather events, have been estimated as being US$306 billion by reinsurer Swiss Re.
McKeown says the resultant reduced international market capacity is combined with current conditions in Australia including
Australia’s record as one of the most litigious countries in the world in terms of liability.
“That’s without touching on the cyber crime wave of attacks on businesses that experts such as digital security specialists McAfee are predicting,” he adds.
McKeown says that shopping around for an insurance broker who understands how a business operates and the conditions it operates under, and who takes the time to run analytics on its risk profile, is a key asset in these kinds of market conditions because they can provide more informed advice and sometimes achieve savings for comprehensive coverage.
A broker can also assist with achieving integrated cover in a single package, without the gaps or loopholes that can occur when shopping for insurance on a policy-by-policy basis.
“A tailored solution packaged into a single program ensures your business is comprehensively covered and offers its owner greater control with a preferred insurer,” he says.
Other factors that help with containing costs are a low claims record and having a risk mitigation plan in place.
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