Risk & Business Magazine Benson Kearley IFG Fall 2019 | Page 27

A TRANSITIONING MARKET coverages. Losses that have a low probability but high severity are suited for higher deductibles and generate premium savings. Alternatively, avoid taking coverage for losses that have high frequency (expected) and low severity. Your insurance policy is not a maintenance policy. account has had losses in the past three years, there will be double-digit increases. WHAT YOU CAN DO ABOUT IT? Whether you are in a tough underwriting class, have a less-than-profitable claims experience, or both, you will need to learn new swimming techniques. Insurance remains the most economical risk transfer, but you cannot remain complacent! • • Communicate with your broker, claims adjuster, and lawyer about your understanding of the risk factors affecting your business. Be proactive with pre- and post-loss control measures on potential losses or identified repeating losses. • Understand the underwriting metrics that impact your insurance cost structure, such as changing revenues and asset acquisitions. • Establish insurance cost benchmarks—e.g. premiums to total insurable values and premiums to revenue ratios—so you can more effectively make cost comparisons on an annual basis. • Do not be complacent on insurer’s loss control recommendations— mandatory or suggested. Show you are invested. Understanding what drives your insurance premiums in either a soft or hard market gives you control in any market cycle. Adjusting your swimming techniques is essential to navigating any business challenge. • Take higher deductibles on certain Do you have questions? Are there specific questions about your business or industry we can answer? Please do not hesitate to send an email or call, and we can discuss your specific situation. + BY: PETER LOUGH, COMMERCIAL ACCOUNT EXECUTIVE, BENSON KEARLEY IFG Peter Lough is a Commercial Account Executive at Benson Kearley IFG. His expertise in corporate risk management is supported by prior experience in the mutual fund industry. He is a former professional lacrosse player, most recently with the Toronto Rock, and has represented Canada at an elite athletic level in both lacrosse and hockey. He successfully obtained his Canadian Accredited Insurance Broker designation. You can reach Peter at [email protected]. 27