How Do Insurance Agents Handle Significant Risk Exposures that Were Initially Overlooked?
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How Do Insurance Agents Handle Significant Risk Exposures that Were Initially Overlooked?
When significant risk exposures slip through the cracks, the expertise of insurance professionals is put to the test. From proactive global risk management to adjusting policies for flood risk coverage, we've compiled five insightful responses from experienced Insurance Agents and Risk Managers. Discover how these seasoned experts have navigated the choppy waters of unforeseen risks.
- Proactive Global Risk Management
- Responding to Cyber Risk Oversights
- Communicate and Mitigate Overlooked Risks
- Alert and Solve Unknown Exposures
- Adjust Policy for Flood Risk Coverage
Proactive Global Risk Management
In my insurance career, I came across a hidden risk for a client's overseas business. We'd only covered their stuff in the US at first. But during a regular check-up, I noticed they were expanding globally. So, I met with them to talk about their international operations. We then did a thorough risk assessment, finding holes in their insurance for foreign lawsuits and local regulations. By working with our partners around the world, we created a custom international insurance plan that protected them seamlessly everywhere they operated. By being proactive, we helped them avoid potential losses and also built a stronger relationship with the client.
Responding to Cyber Risk Oversights
Early on in my insurance career, I realized we had missed a critical security risk in a client's policy. We quickly contacted them and did a deep dive into their risks. Based on that, we built a custom cyber-insurance plan to plug the hole. What surprised us was that data showed 60% of similar businesses had been cyber-attacked in the past year! To avoid this happening again, we tightened our review process and invested in fancy software that helps predict risks. This whole experience made our clients happier and boosted our cyber insurance sales by 15%.
Communicate and Mitigate Overlooked Risks
Communication is the first move. Make sure all involved parties are aware of the overlooked risk exposure. Then, there needs to be a discussion about what effects the risk may have on each party. As a group, a plan detailing the corrective actions to mitigate the risk should be developed and agreed upon. Finally, put the plan into action and check its progress regularly!
Alert and Solve Unknown Exposures
Communication is key; ask as many questions as you can in order to avoid this situation. When you do find significant unknown risk exposures mid-policy year, alert underwriting as soon as possible so you don't have a potentially large problem. Also, let your insured know that there could be additional premium due and/or a potential rewrite in order to accommodate. Solve the problem as soon as you can so you protect your insured—and your E&O.
Adjust Policy for Flood Risk Coverage
As an insurance professional, I once encountered a significant risk exposure that was initially overlooked in a client’s home insurance policy. During a detailed policy review, I discovered that their coverage didn't adequately address the potential for flooding, which was a high risk given their location. Recognizing the urgency, I contacted the client to explain the oversight and the potential financial impact of flood damage. We quickly adjusted their policy to include comprehensive flood coverage, ensuring they were fully protected. The client was grateful for the proactive approach, which reinforced the importance of thorough and regular policy reviews in mitigating overlooked risks.
