2021 loss experience is pressuring insurers to respond in several ways. How do you approach in 2022?

“The magnitude of insurance losses from catastrophic weather and from gargantuan civil litigation awards is a clarion call for legislators, regulators, individuals, businesses and insurers to act to protect lives and property from avoidable loss. The loss experience of 2021 is pressuring insurers to respond in several ways. First, insurers are challenged to be creative and relevant, providing protection to individuals and businesses against risks new or larger than heretofore experienced.“ January 3, 2022 Insurance Journal

We’ve all seen the handwriting on the wall. 2021 was a difficult year and has set the tone for 2022. Industry Brokers/agents will need to work closely with their clients to take control of the insurance submission and renewal process with a commitment to broad data collection and data quality, an ability to differentiate their client, an ability to build a narrative, and to communicate a winning story. Here are four tips to help market risk in 2022.

I. Information

Increased information will help buyers more accurately model any changes (e.g., reduction in limit, or increased retention) and help assure risk management strategies reflect organizational risk appetite or corporate philosophy.

2. Analytics

Analytics provide important guidance as buyers align offerings in the marketplace to their rapidly shifting risk transfer needs.

3. Data

Buyers need to distinguish themselves from their peers, especially in challenged occupancies. Risk managers and insurance agents and brokers must help shape the narrative and effectively tell this story, providing necessary data to satisfy underwriters’ insistence on robust underwriting information.

4. Communication

Communication is essential – telling a story of mitigation efforts, improved loss control measures and disaster recovery/business interruption plans remain critical in differentiating a buyer’s risk.

Conclusion

We’re just about three weeks in to 2022. Setting up this four-step framework will help increase risk marketing effectiveness with underwriters now and throughout 2022, as well as manage client expectations. Need additional assistance? Contact the team at Novita Insurance Solutions, LLC, for more information; we’re here to help.