Q3 Aon Advice to Clients
Use Your Trading and Risk History as a Negotiation Lever
Work with Aon to document the current and historical details of your trading relationships and leverage them in renewal negotiations with insurers. Summarize your total premiums, aggregate spend versus aggregate losses, pricing and deductible increases, and changes in terms and conditions. Understanding the broader and longer-term picture can help insurers evaluate your risk more strategically.
Leave No Stone Unturned to Avoid Underinsurance
In today’s inflationary environment – and in light of ongoing supply chain issues which tend to drive up costs and increase indemnity periods –underinsurance has become a widespread, yet often hidden, problem that can have myriad consequences. To minimize the risk of underinsurance and any potential impacts, re-assess your valuations, secure appraisals, and conduct PML studies. Recalibrate your indemnity periods. Work with your Aon team to review co-insurance and average clauses in policies as these present specific risks. Consider using proxy exposures that are less susceptible to inflationary impacts.
Highlight the Strength of Your Risk Management Approaches
While much of the market has become growth-focused, risk quality remains a top priority for insurers. Demonstrate that your risk is best in class by illustrating the proactive, risk-focused culture of your firm and the effectiveness and strength of your risk management and loss control approaches. Show how your risk has improved over time. Highlight the lessons learned from past losses, and improvements implemented as a result. Describe how your firm navigated the pandemic. Provide strong supporting materials.
Share Your ESG Story
The focus on Environmental, Social, and Governance initiatives and strategies continues to intensify for the insurance industry and society at large. It is more critical than ever for organizations to develop proactive ESG strategies and to articulate in their marketing presentations the investments they are making in ESG, along with their sustainability goals and initiatives.
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