If there was a way for your clients to improve the performance of their business, the performance of their employees, reduce work related incidents, reduce operating expenses and contain insurance costs, do you think they would thank you for showing it to them? The answer is definitely yes.
Perhaps you already provide risk management services to your clients and are always looking to add to the suite of risk services you provide to your clients, or you are looking to provide these services to your clients in the future. If so then you should at the least consider the advancements there have been in identifying, training and managing improvements in cognitive abilities of people in organisations.
The focus on neuroscience products is gaining momentum through the results that have been achieved in global trials. The wake-up call for mental health is similar to that of the “Life – be in it” campaign of the mid-1970s. In the 70s, who would have thought that exercise would have become the industry that it is today? Personal trainers and their classes making use of urban parks, popular TV shows such as the Biggest Loser
and more. Mental health is starting its own journey as more people realise that they can exercise and improve more than just their physical health. They can be sharper decision makers too.
To your clients and their business the advantages in identifying, understanding and enhancing the cognitive abilities and mental wellbeing of the people within their organisation are that they can reduce their business risk by improving an employee's ability to recognise and avoid dangerous situations. This is important for workplace OH&S which is all about safe business operation for the employees. Having a safer, more efficient business also influences insurance benefits, including reduced premiums.
The latest versions of cognitive products are easy to use, with manufacturers building training products to be game-like in nature. Improvements in ability are measurable. The products include reporting systems that show the employee and the employer the starting point and their improvements as they progress through their ongoing training.
As all brokers know, from the insurer's perspective, insurance premiums are based on an assessment of the degree of exposure to risk including the probability and frequency of loss. A risk that is assessed as being a lower exposure with low probability and frequency of loss will attract a premium in the lower range of the premium band for the risk. It follows that a risk that is assessed as being high exposure with high probability and frequency of loss will attract a premium in the higher range of the premium band for the risk.
When you can provide an insurer has a clear picture of the pro-active and effective risk management strategies employed in a business, it can include those relevant risk strategies In the overall insurance assessment of risk exposure. The more that an insurer knows about how your clients pro-actively manage risk in their business, the more able they are to apply appropriate pricing to that risk.
This can mean that your clients are able to influence reductions to the premium applied to their business and over the longer term, lessen the impact of pricing increases in comparison to similar businesses in their particular industry as insurance rates rise. When increased decision making capabilities for drivers result in a demonstrated lower claims cost due a reduction of “at-fault” incident claims, this can have a direct influence on the price paid for insurance cover. After all, a lower total claims cost has a direct influence on the cost of insurance.
Peter Marshall is Business Development Manager at ProRisk and Duncan Ferguson is CEO at Elite Minds. To find out more contact Elite Minds or ProRisk.