Loss control measures for your clients
Andrew Hosie of Marsh Risk Consulting and Mike Findlay of RSA Canada discuss loss control measures to help brokers' clients avoid business losses.
Video transcript below:
David Gambrill, Insurance Business TV
David Gambrill: Generally it’s been a good year in Canada for avoiding claiming catastrophes and insurance premiums are relatively stable. But that hasn’t stopped Canadian commercial brokers from coming up with new loss control measures that will help keep their clients claims and premiums under control. I am David Gambrill, welcome to Insurance Business TV.
Brokers play an important role in mitigating claims risks, before catastrophe strikes by helping their clients to take steps to prevent bad insurance losses from becoming worse.
Andrew Hosie, VP, Marsh Risk Consulting
Andrew Hosie: A practical risk management strategy will typically have one or other of the following two elements. One is the consolidation and analysis of loss data and the other is sort of a greater understanding and sort of an empowerment from within that organisation through the understanding of causation factors which can streamline that organisation’s internal risk control elements. This could include training and education, it could include increased risk control activities from within. Training and education might include online modules created specifically for a known risk or an industry trend, that is being seen to increase or through day to day activities which might include business continuity or product recall management which would be ingrained as I said on those day to day activities.
Mike Findlay, Assistant VP, National Programs, RSA, Canada
Mike Findlay: The industry has been in an extended soft market cycle and what’s important is that the insureds understand they have the ability to retain some of their risks and drive down their costs. Some of the options that we handle with our insurers is for them to have varied deductibles, whereby they take on a greater ownership of the risk and they demonstrate that they have risk management strategies in place that are deductible in the event of a claim will actually be reduced and we settle at that reduced amount. What this has an impact on is not only the performance of their account, but also in their brand value, which ultimately has some benefit, probably greater benefit to that the company rather than perhaps the cost of the insurance.
David Gambrill: It may not always be possible for a broker’s claim to avoid a business loss, but with some creative planning in advance, brokers can help their clients avoid the worst of the damage and maybe save some money in the process. I am David Gambrill, thanks for watching Insurance Business TV.