Q3 Aon Advice to Clients
Engage with insurers who align with your values.
ESG is becoming ever more important for everyone, and insurers are no different. Aligning with those that share similar values will help ensure a more sustainable relationship, and therefore greater certainty, over time.
Maintain ongoing insurer dialog.
Even after inception, maintain connectivity with underwriters to reinforce ‘out of cycle’ relationships across insurer management levels. Expand relationships to include claims teams to align on expectations throughout the claims journey.
Be proactive and differentiate your risk.
The current, selective underwriting environment calls for detailed disclosure of business profiles as well as a description of risk management and mitigation efforts. Be sure to describe changes to your business models. Leverage analytical tools like risk modeling. Risk differentiation is key and, when combined with sufficient lead time for underwriter review, generally results in more positive outcomes.
Set your risk tolerance and appetite at a portfolio level rather than per product
Rather than assuming large deductibles on part of your program and small deductibles on other parts, consider consolidating premium and leveraging it to build scale within a captive.
Report claims proactively and with thorough documentation.
Provide regular updates to excess insurers, especially related to any claim that is nearing 50% of the first attachment. Reporting delays and failure to report according to contract terms remain two of the top reasons claims are denied.
Explore all options.
Review retentions, scope of coverages, and sub-limits. Consider alternative sources of capacity, long term agreements, renewal discounts, and structured portfolio solutions. Work with Aon to ensure options are fully explored.