Companies must manage the loss before it happens: Anra

A greater focus on managing losses before they occur benefits both companies and their insurers, and is especially important at a time when the insurance market is hardening. This was the major takeaway from a webinar held by the Association of Italian Risk and Insurance Managers (Anra), entitled ‘Managing the claim before the claim’. The virtual workshop featured Carlo Cosimi, Anra chairman, and a number of insurers and brokers including: Ellen Bertolo, head of claims, Aon; Massimo Puglisi, head of claim advisory, Aon; Filippo Emanuelli, CEO, Belfor; and Enrico Mercogliano, head of GC&CI property casualty and multinational claims, Generali. Insurance companies are rapidly expanding their businesses by embracing prevention services. New sectors within their organisations are being created with the aim of supporting customers, especially corporations, in applying risk prevention programmes and managing a property claim. The common denominator shared by insurance companies and corporations is an awareness of the importance of minimising the damage caused by an adverse event. For the former the main goal is reducing compensation costs; for the latter, avoiding production outages as far as possible, or at least shortening the time for a return to regular schedules. It is recommended that enterprises adopt a strategic vision: the implementation of a risk management policy should be combined with the ability to analyse complexities related to a potential claim and the design of an emergency response plan. Insurance brokers liaise between corporations and insurance companies. The responsibilities of their role include maintaining business relationships with customers and also specific expertise in restoration companies. When the parties work as a team, the insured company benefits both in terms of prevention and in the event of an accident. The Anra workshop highlighted the great value of being prepared in the event of an accident within the current framework. The insurance market is going through a tightening-up period. In other words, when signing a policy, the frequency and extent of accidents play an important role. Insurance companies evaluate business activities carefully but also the prevention measures in place, the handling of claims, and training sessions for staff on how to react to an emergency. In addition, the insurance company will need to be informed about which area will be the hardest hit, in particular if the accident entails responsibility and liability for the environment, people or safety. This subject fits perfectly into operational resilience. A resilient company should educate each of its functions to deal with risk and determine priorities, selecting what activities and services must be protected, according to the impact on business and operational continuity. Even more so, being ready and prepared helps companies to navigate unpredictable situations. When an accident occurs, bewilderment and uncertainty might prevail despite the presence of an implemented business continuity plan. In this unfortunate case, a claims advisory function might help out – knowing the agreed coverages and the claim management system, they will guide and facilitate the entire process that leads to damage compensation. A group of employees, well trained to promptly react to threats, might support this function with multi-level approaches. The team will respond to an emergency by alerting the key figures, from the insurance broker to the public authorities, will handle the critical situation and implement the safety plan, will advise the rescuers on the risk magnitude in order to undertake appropriate measures to limit damages, and will be aware of the priorities to be safeguarded to expedite the return to normality. The team is also essential in the post-accident recovery stage. An agreement with a company offering a quick and professional service will contribute to limiting damages and the disruption of business. Resuming operations as soon as possible minimises the risk of pollution in the event of accidents like fires, leaking liquids and floods. In view of strengthening the cooperation among all the parties involved in managing a crisis, from a vision focused on claims to one committed to services, insurance companies will be able to confirm their key role. A prompt dialogue with the customer facilitates the entire claim management process and reduces the litigation risk. A more service-oriented relationship is pivotal for the company. For a successful alliance, it’s worth knowing the customer’s business well, paying attention to their concerns and providing professional support to cope with the adverse event and its consequences.

Companies must manage the loss before it happens: Anra

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Want to read this article?

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