Is commercial insurance available to meet corporate expectations?

After several years of soft market conditions, there has been a material correction in both commercial insurance coverage availability and pricing. Corporate insurance buyers – some for the first time – are finding insurance procurement to be much more of a challenge.

In an increasingly-interconnected world, rising geopolitical tensions, climate change pressures, cyber insecurity and fallout from the Covid-19 pandemic all present greater aggregation potential for the insurance industry. At the same time, corporate clients are seeking more integrated, business-specific and highly-customised insurance solutions.

The result is sub-optimal customer experience combined with greater uncertainty that the insurance contracts will meet expectations – a widening gap between the needs of the corporate buyer and the willingness of the insurance market to respond.

A significant factor appears to be the lack of sufficient skilled, experienced and reliable resources – on both sides of the negotiating table – willing to:

• work at reducing the coverage gaps, taking into account the specificities of the corporate client,
• explain clearly where, and why, material gaps remain,
• simplify, insurance contract intent, structure and language to facilitate the setting of clear coverage, limits and retention expectations
• ensure, as far as possible, that commercial insurance contracts respond in the manner intended
• design corporate insurance programmes with clear structural and coverage interfaces between the component insurance contracts
• find innovative risk financing solutions (e.g.: parametric solutions) to address the residual coverage gaps that matter.

RCN can help bridge this gap. It has a proven track record working with businesses from major multinationals to SMEs throughout EMEA and North America. RCN has operated independently from any market influence for more than 15 years and across different industry segments.

Large Multinationals

Large, complex organisations, including Fortune 500 and FTSE 100 companies need to align risk management with global business strategy.

Substantial organisations like these need to be confident that their risk financing programmes will operate as intended and are supported by processes that are both efficient and effective.

MEDIUM SIZED BUSINESSES

Risk and insurance management challenges are usually significant but companies may have limited internal resources. Insurance programmes must be dependable and offer value for money.

It is equally important to ensure that insurance protections and related services remain closely matched to evolving business needs.

SMEs & Start-Ups

Management will be focused on entrepreneurial opportunity and building a viable business, yet risk management and insurance priorities should be clearly identified at the outset.

Business survival may depend on robust insurance support. Business profiles of young companies often evolve rapidly; regular review of insurable exposures is advisable.