Businesses in all industries face a host of both emerging and established risks that are often difficult to understand or foresee.
Whether it is trying to explain to a client the need for cyber cover or why they need to up their limits in management liability, it can be a challenge to educate and convince a client on where they need protection.
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Of course every broker will have a different way of approaching a client on a hard to digest risk or insurance area, but Marcelo Teixeira, global head of bancassurance and head of strategic development, emerging markets division at
QBE Insurance Group, said that storytelling is all important.
“Nothing beats the storytelling,” Teixeira told
Insurance Business. “Nothing beats the impact of you sharing what happened to others. I think we have the ability to give an illustration of what happened to others and how much people can learn from the experience of others, not having to go through the negative experience.
“If I were a broker, I would make sure that every single conversation includes examples of customers that have faced the unfortunate event of a loss without protection.”
While much has been made about the take-up, or lack thereof, of cyber insurance, other, more well-established risks remain under appreciated. The recent
Vero SME Index found that there is a significant insurance gap in business interruption cover, showing that brokers and the wider industry have both a challenge and an opportunity to help clients understand their risks.
Teixeira said that the entire industry has a role to play in the uptake of underappreciated risks across the spectrum and suggested that insurers and brokers need to get a better understanding of their customers to find and create suitable products.
“We need to be closer to customers and, through that, understand the fit between the offering that we have today and how much we need to adjust the offering… to the need that they have,” he said. “We need to ensure that becomes a routine part of the day-to-day conversation between insurers, brokers, agents, customers.”
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