\nEngage with underwriters early<\/strong>
\nThe earlier that insurers are engaged in business transformation conversations, the better. Lenders and investors will take comfort from the backing and support of credible insurers, however insurance takes time to arrange and underwriters will need to understand the risks and get comfortable with risk management controls put in place.<\/p>\nSome risks may also require innovative solutions, which take time and collaboration to develop. Switching to new sources of energy, like green hydrogen for example, or adopting prototype technologies, will have implications for risk and insurance. Underwriters will need to work with customers to understand how new technologies will affect exposure and adapt their offering to meet future needs.<\/p>\n
Risk professionals need to be proactive and take the lead. Whether adopting new technology or radically transforming a business model, it is important to start the conversation with insurers at an early stage, as this will avoid delays or surprises when it comes to arranging cover and financing. No one wants a lack of insurance to inhibit a transaction or business transformation.<\/p>\n
Proactive conversations will become the norm <\/strong>
\nAs climate change adaptation gathers momentum, business transformation is sure to rise up the agenda. Risk managers and insurance buyers need to start thinking about the implications of business transformation on their organisation\u2019s future risk profile and engage with insurers on solutions to mitigate or transfer the risks, which could include non-traditional solutions like parametric insurance.<\/p>\nWe are beginning to have these conversations with some of our customers, where climate change is already transforming their businesses. We want to maintain a dialogue with customers to understand their changing risks and insurance needs, bringing underwriting, risk engineering and claims experts to the table. Last year, I spent three very rewarding months on secondment, working with a global energy company going through a business model transformation, to understand the risks and opportunities of developing new green technologies, such as carbon capture and storage, and working through the insurance implications.<\/p>\n
While secondments are currently the exception, and not the rule, closer collaboration between insurers and their corporate customers will need to become the norm as more and more companies undergo transformation towards more sustainable business models in the coming years. Many companies are making decisions and investments today that will have important implications for their future risks and insurance needs.<\/p>\n
To fully benefit from megatrends such as decarbonisation and allow for business transformations to be a success, continuous engagement with insurance partners is essential to understand how risks are changing and to ensure that future products and services are fit for purpose. The earlier this dialogue begins, the better, and the earlier companies can leverage the opportunities that these megatrends create.<\/p>\n
Contributed by Kayne Sheppard, casualty underwriter, Zurich Global Energy<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"Climate change is set to transform businesses, requiring early engagement with insurers to understand the risks and develop innovative solutions, according to Kayne Sheppard, casualty underwriter, Zurich Global Energy. Businesses face a sustained period of change as decarbonisation transforms business models and supply chains during the coming decade. This trend …<\/p>\n","protected":false},"author":10,"featured_media":86499,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_uag_custom_page_level_css":"","footnotes":""},"categories":[197,202,266],"tags":[499,407],"acf":[],"uagb_featured_image_src":{"full":["https:\/\/www.commercialriskonline.com\/wp-content\/uploads\/2022\/01\/zurich-matthew-joseph-x-business_matthewjosephphoto_60e810440a120-210623_zurich_business_shot1-0125_700x400.jpg",700,400,false],"thumbnail":["https:\/\/www.commercialriskonline.com\/wp-content\/uploads\/2022\/01\/zurich-matthew-joseph-x-business_matthewjosephphoto_60e810440a120-210623_zurich_business_shot1-0125_700x400-150x150.jpg",150,150,true],"medium":["https:\/\/www.commercialriskonline.com\/wp-content\/uploads\/2022\/01\/zurich-matthew-joseph-x-business_matthewjosephphoto_60e810440a120-210623_zurich_business_shot1-0125_700x400-300x171.jpg",300,171,true],"medium_large":["https:\/\/www.commercialriskonline.com\/wp-content\/uploads\/2022\/01\/zurich-matthew-joseph-x-business_matthewjosephphoto_60e810440a120-210623_zurich_business_shot1-0125_700x400.jpg",700,400,false],"large":["https:\/\/www.commercialriskonline.com\/wp-content\/uploads\/2022\/01\/zurich-matthew-joseph-x-business_matthewjosephphoto_60e810440a120-210623_zurich_business_shot1-0125_700x400.jpg",700,400,false],"1536x1536":["https:\/\/www.commercialriskonline.com\/wp-content\/uploads\/2022\/01\/zurich-matthew-joseph-x-business_matthewjosephphoto_60e810440a120-210623_zurich_business_shot1-0125_700x400.jpg",700,400,false],"2048x2048":["https:\/\/www.commercialriskonline.com\/wp-content\/uploads\/2022\/01\/zurich-matthew-joseph-x-business_matthewjosephphoto_60e810440a120-210623_zurich_business_shot1-0125_700x400.jpg",700,400,false],"image-publication":["https:\/\/www.commercialriskonline.com\/wp-content\/uploads\/2022\/01\/zurich-matthew-joseph-x-business_matthewjosephphoto_60e810440a120-210623_zurich_business_shot1-0125_700x400-390x223.jpg",390,223,true],"image-publication-large":["https:\/\/www.commercialriskonline.com\/wp-content\/uploads\/2022\/01\/zurich-matthew-joseph-x-business_matthewjosephphoto_60e810440a120-210623_zurich_business_shot1-0125_700x400-476x272.jpg",476,272,true],"jannah-image-small":["https:\/\/www.commercialriskonline.com\/wp-content\/uploads\/2022\/01\/zurich-matthew-joseph-x-business_matthewjosephphoto_60e810440a120-210623_zurich_business_shot1-0125_700x400-220x150.jpg",220,150,true],"jannah-image-large":["https:\/\/www.commercialriskonline.com\/wp-content\/uploads\/2022\/01\/zurich-matthew-joseph-x-business_matthewjosephphoto_60e810440a120-210623_zurich_business_shot1-0125_700x400-390x220.jpg",390,220,true],"jannah-image-post":["https:\/\/www.commercialriskonline.com\/wp-content\/uploads\/2022\/01\/zurich-matthew-joseph-x-business_matthewjosephphoto_60e810440a120-210623_zurich_business_shot1-0125_700x400.jpg",700,400,false],"featured-2":["https:\/\/www.commercialriskonline.com\/wp-content\/uploads\/2022\/01\/zurich-matthew-joseph-x-business_matthewjosephphoto_60e810440a120-210623_zurich_business_shot1-0125_700x400-530x340.jpg",530,340,true],"editors-pick":["https:\/\/www.commercialriskonline.com\/wp-content\/uploads\/2022\/01\/zurich-matthew-joseph-x-business_matthewjosephphoto_60e810440a120-210623_zurich_business_shot1-0125_700x400-219x115.jpg",219,115,true],"archive-thumbnail":["https:\/\/www.commercialriskonline.com\/wp-content\/uploads\/2022\/01\/zurich-matthew-joseph-x-business_matthewjosephphoto_60e810440a120-210623_zurich_business_shot1-0125_700x400-375x375.jpg",375,375,true],"mobile-thumbnail":["https:\/\/www.commercialriskonline.com\/wp-content\/uploads\/2022\/01\/zurich-matthew-joseph-x-business_matthewjosephphoto_60e810440a120-210623_zurich_business_shot1-0125_700x400-375x300.jpg",375,300,true],"single-feature":["https:\/\/www.commercialriskonline.com\/wp-content\/uploads\/2022\/01\/zurich-matthew-joseph-x-business_matthewjosephphoto_60e810440a120-210623_zurich_business_shot1-0125_700x400-700x400.jpg",700,400,true],"square-thumbnail-s":["https:\/\/www.commercialriskonline.com\/wp-content\/uploads\/2022\/01\/zurich-matthew-joseph-x-business_matthewjosephphoto_60e810440a120-210623_zurich_business_shot1-0125_700x400-100x100.jpg",100,100,true]},"uagb_author_info":{"display_name":"Tony Dowding","author_link":"https:\/\/www.commercialriskonline.com\/author\/tony-dowding-2\/"},"uagb_comment_info":0,"uagb_excerpt":"Climate change is set to transform businesses, requiring early engagement with insurers to understand the risks and develop innovative solutions, according to Kayne Sheppard, casualty underwriter, Zurich Global Energy. Businesses face a sustained period of change as decarbonisation transforms business models and supply chains during the coming decade. This trend …","_links":{"self":[{"href":"https:\/\/www.commercialriskonline.com\/wp-json\/wp\/v2\/posts\/86521"}],"collection":[{"href":"https:\/\/www.commercialriskonline.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.commercialriskonline.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.commercialriskonline.com\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/www.commercialriskonline.com\/wp-json\/wp\/v2\/comments?post=86521"}],"version-history":[{"count":3,"href":"https:\/\/www.commercialriskonline.com\/wp-json\/wp\/v2\/posts\/86521\/revisions"}],"predecessor-version":[{"id":86700,"href":"https:\/\/www.commercialriskonline.com\/wp-json\/wp\/v2\/posts\/86521\/revisions\/86700"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.commercialriskonline.com\/wp-json\/wp\/v2\/media\/86499"}],"wp:attachment":[{"href":"https:\/\/www.commercialriskonline.com\/wp-json\/wp\/v2\/media?parent=86521"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.commercialriskonline.com\/wp-json\/wp\/v2\/categories?post=86521"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.commercialriskonline.com\/wp-json\/wp\/v2\/tags?post=86521"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}