Understanding risk is a key part of an insurer’s process when developing cover, and according to brokerage Willis Towers Watson, advisers should be more involved at this vital stage - particularly when it comes to developing cover for more complicated sectors.
Tony Seto, national construction manager - corporate risk solutions at Willis Towers Watson New Zealand, says that brokers often “sit back” and leave insurers out of the picture when trying to understand risk, and says a partnership approach with information “from all directions” may help develop cover for sectors like renewables, or cover for some risks associated with COVID-19.
“You need insurers to be there to share the data that they have, and you need the brokers to partner up with the insurers and try to bring the parties together,” Seto said.
“Too often we see brokers just sitting back and leaving insurers out of the picture completely. Willis Towers Watson is a big advocate of bringing that partnership together and making sure there’s a flow of information from all directions, so that we can look at the whole asset and risk picture and try and work out a solution.
“It’s also up to the sectors themselves, the developers and the manufacturers to be engaged and open to criticism, or to changes to their plans.”
Seto says that insurance is certainly reacting to some of the more complicated risks across different areas, but that brokers could offer valuable input around the needs of their clients, and areas where cover could be changed or improved.
“Insurers are always learning,” Seto said.
“Take COVID-19, for example - you’re now seeing insurers reacting to some of those risks, and a lot of it is just part of the process of the industry.”
“You can’t understand and cover for all risks unfortunately, but there’s a lot of effort that is being made by a lot of insurers,” he added.
“I know our own London office is regularly engaged in market discussions around the latest technology, and we take part in regular presentations for education purposes. That all comes together, and at the end of the day, that’s what insurance is there for - to understand and help manage risk.”
