The environment matters to people, and as brokers showing that you not only care, but have solutions available, will give you an edge on the competition.
Hundreds marched through major cities across North America recently in support of a United Nations meeting that hopes to put the brakes on climate change. The goal of the summit is to limit worldwide temperature increases to less than 2 degrees Celsius.
A worthy goal. But as brokers, what should your goals be for your clients?
Climate Change has been directly linked to an increase in severe weather events. In 2013, severe weather events cost the Canadian insurance industry $3.2 billion in insured losses – the highest in the nation’s history.
Match that with the growing number of finished basements, replete with big screen televisions and high-end furnishings, and the meteoric rise in claims replacement costs are easy to understand.
You only have to look back to last month, when Burlington, Ont. fell victim to two months’ worth of rainfall in only a few hours. Clients are quick to say ‘it can’t happen to me,’ only realizing after the skies have cleared that it does happen, and it does costs thousands.
A lesson taught to southern Alberta residents in 2013, and to those along the Saskatchewan/Manitoba border this summer.
As part of the RSA network, it is worth mentioning that RSA is an active partner with the World Wildlife Fund, through efforts like the involvement in research and GIS mapping project around sustainable shipping in the Arctic.
It is through those efforts that RSA will provide insight into the biologically and ecologically sensitive areas along the route, and to gather information to mitigate risk for those vessels looking to traverse the environmentally-sensitive ecosystem of the Northwest Passage.
On a less global scale, you can show the direct benefits to your clients in very tangible terms. (continued.)
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Clients love lists – and sharing the top five causes of water damage can drive home the point that flooding need not require an act of God, but some simple mechanical failures.
A good place to start is with the discussion guide and tip sheets on rsabroker.ca/climatesmart:
Top five causes of water damage
1. Sewer backup
2. Burst plumbing pipes and appliance hoses
3. Leaking hot-water tanks
4. Overflowing sinks and toilets
5. Leaking roofs
Starting the discussion
Along with this list, you the broker can then follow up with these top five questions to ask the client:
1. Have you ever been impacted by flooding or any other kind of water damage? Or do you know someone who has?
2. Have there been any changes or renovations to your property? We should review these to see if any changes are needed to your policy.
3. Would you know what to do if water damage affected your property?
4. Would you like to learn more about how to prevent water damage?
5. Do you know how quickly your insurer would be able to react if you made a water-related claim?
Mitigation matters
Mitigation is a carrot that brokers can offer clients beyond the ‘pay more on the policy’ argument. Explaining that installing sump pumps – or simply purchasing a home that is not located in a flood zone – can go a long way to mitigating the risk; and it shows that the client is committed to being prepared for a flood, becoming a partner with the broker in reducing risk.
A greater responsibility
Today’s client feels more of a social obligation to the planet, and certainly the argument that going the extra mile to install a sump pump or use building materials that are hail resistant will benefit everyone, will fall on receptive ears when presented to the client.
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