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Hard insurance market

Nov 03, 2022

Martin Hald

Hard Insurance marked

Premiums are still rising and the capacity that insurance companies make available to companies is under pressure.

Insurance companies have become more restrictive in their selection of risks they wish to insure.

For many years, I have met companies, large and small, who, when the conversation fell on risk management, responded with "I have insurance that takes care of my claims"…….. to that statement, unfortunately, I can only say that the time when the insurance companies blindfolded signed on risk in order to increase their portfolio and premiums - are over and will never be back.

Insurance is, no matter how sexy the insurance industry wants to make it, only risk financing, - and if you, as the person responsible for a company's risks, do not take the ownership of those risks seriously - and at the same time have a risk that lies in the "heavy" end of e.g. fire exposure - From now on you will look into a future with increasing premiums and potential lack of capacity and finally perhaps - as some companies are already experiencing - very limited or no possibility of getting your company insured.

If you have been out to tender with your insurance policies, and only one or a few Insurers have wanted to bid on your risk - then it is a signal with a sledgehammer and you should react accordingly, as it is presumably only the beginning - imagine if only one insurer in the market wants to insure your company and you suffer a medium-sized fire damage. Then it is very likely that your next renewal will be a struggle, your current insurer might be reluctant to renew and no one will be interested, This will leave you without the possibility to insure your company - This is actually the reality for an increasing number of companies!

Now, it is not because the Insurers are either evil or do not want to fill out their role as insurers, but because the new technology makes it possible for insurers to get a deeper insight into their own risk appetite and act accordingly.

Insurers are at the end of the day just companies, that like any other business need to optimise their earnings and shareholder value.

How can we help your business and the insurance industry !!!

Who are 21RISK:

21RISK is a SaaS company that delivers software second to none, enabling you to describe, mitigate and visualise your risk to your stakeholders such as management, brokers and insurers:

How can we help:

If insurance premium and insurance capacity are a function of your inherent risk and your ability to reduce and mitigate your risk, then the solution is quite simple

  • Describe
  • Reduce
  • Visualize

When we know how an insurance premium is composed, it also makes good sense since up to 70-80% of an insurance premium (directly and indirectly) goes to the insurance company in anticipation of future damages.

Step one:

Collect your insurance values with 21RISK unique Value Collection system, and describe your risk with 21RISK Initial audit risk model.

Step two:

Run several risk models e.g fire protection, weekly housekeeping, NatCat, Climate etc. to investigate potential risk mitigation issues.

Initiate corrective actions, and automation to follow up on outstanding issues.

If you suffered a major damage e.g. fire, make an RCA (root cause analysis) and implement the root cause in the model, to make sure that all initiatives are taken to avoid future similar damages.

Step three:

Visualise your work and data with your insurers & reinsurers via our Power BI application or give them direct access to view your data in 21RISK.

Risk, premiums and -capacity are interlocked.

21RISK helps you improve your risk by enabling you to make risk mitigation and data communication easy as pie.

Your risk improvement will be a data-driven superpower that will create a trustworthy relationship with your insurers.

  •  21RISK helps you to initiate risk mitigation work

  •  21RISK helps you systematize risk management

  •  21RISK helps you visualize your work with risk reduction

  •  21RISK helps you communicate your work with your insurance company

21RISK helps you to make your risk better and thereby more interesting to the insurance companies.

If you are interested in a talk about Data, Risk and Insurance - please do not hesitate to reach out to me.

Best regards Martin


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