Being well-versed in emerging risks will help brokers solidify their place in the insurance value chain as disintermediation continues to creep into the market, an expert has said.
As direct insurers move into more commercial lines and consumers look for their insurance needs online, brokers should focus on understanding emerging risks. That’s the verdict of Nick Sordon, senior casualty treaty underwriter,
Swiss Re, who said that brokers have been integral in their advice to clients over the years and an understanding of emerging risks across a range of areas will be key for the future.
“It is always a great factor for a broker to provide consolidated advice and be informed about the emerging risks clients may face. I’d say this is a powerful tool,” Sordon told
Insurance Business. “Some clients may not be so interested but it is important that the broker has the capabilities to provide that advice or alternatively connect their clients with someone who can provide the advice and support on that.”
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For brokers it has always been vital to understand the risks impacting their clients - but the rate of change around emerging risks is growing at an “unprecedented” rate and meeting client expectations on the risks that could impact them in the future is a challenge.
However, it is not just brokers that could benefit from a better understanding of emerging risks as the entire industry could gain from developing its knowledge around areas of growing client need. Sordon noted that exploring these risks will open doors from a new product perspective – and that the industry could gain an advantage by offering value-added risk mitigation advice that other channels may lack.
“Risk is the insurance industry’s business - we have been dealing with new risk since the dawning of the industry, as well as how we adapt to those,” Sordon continued. “However, not only is it being aware of the risk but being prepared for the opportunity.”
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