Essential Insurance Risk Management Tips for Brokers

There are so many factors that brokers should consider when it comes to improving insurance risk management in their firm. Below are some key suggestions for reducing your exposure to professional indemnity claims.

  1. To ensure good insurance risk management, make sure that you are aware of, and comply with, all your regulatory requirements when conducting businesses.
  2. Make sure that enough questions are asked to really understand what your customer is asking and the insurance cover they need to consider. Suggest covers that they should consider.
  3. Clearly understand what your customer does, where they do it, who they do it with and how they do it. These are important for insurance risk management of commercial customers.
  4. Following the needs and demands assessment, make sure that an appropriate needs and demands statement are issued. This is a vital part of insurance risk management.
  5. If you have binding authority, do not deviate from the terms of the authority. Breaching binding authority can lead to a very expensive claim.
  6. Make sure that the customer knows the cover they are buying and not buying. Explain the key elements of cover and give clear details for proper insurance risk management.
  7. Make sure that the cover is appropriate and adequate for the needs of a client. This is one important key to insurance risk management.
  8. Keep notes of all key conversations and meetings. If a client advises to change their circumstances, make note of it. Keeping records is important in insurance risk management.
  9. Do not advise on subjects you are familiar with. If a client enquires about a kind of cover that does not fall into your area of expertise, seek assistance.
  10. Perform regular peer reviews and file audits. This ensures that all staff is following correct procedures that are consistency in taken.
  11. Have a clearly defined IT and document management policies. See if there are adequate safety measures, and that electronic files are secured from unauthorized access.

Finally, it would be worth emphasizing how important good insurance risk management is. Dealing with a professional indemnity claim can be expensive and many insurers ask that you are actively involved in the process.