Risk & Business Magazine General Insurance Services - Fall 2020 | Page 7

UNCERTAIN TIMES
Uncertain
Times Ahead
BY: DAVID GATELY
BUSINESS RISK ADVISOR,
GENERAL INSURANCE SERVICES
For 2020, the insurance market
has reached a crossroads. After
approximately 20 years of a soft,
buyer friendly insurance market,
we are moving toward a firming or
hardening market—one that is less friendly
to insurance buyers.
While the effects of this hardening insurance
market on your business will depend on
a variety offactors, many businesses will
see premium increases for their insurance
coverage overall. In fact, for some types of
coverage, businesses may see double-digit
rate increases at their next renewal.
Beyond that, managing a business today is
more challenging than ever. Organizations
must account for dynamic short- and longterm
trends in their industry while also
addressing trends that affect the economy as
a whole. Compounding the issue, all of this
is unfolding at a time when the coronavirus
(COVID-19) pandemic has upended life and
business as we know it.
While the full human and economic cost
of the COVID-19 pandemic has yet to be
seen, it’s clear that it has had a profound
influence on businesses across the country.
In many cases, businesses are facing
challenges related to operational changes,
the health and safety of their workforce,
new compliance requirements, and revenue
forecasts. The COVID-19 pandemic is sure
to influence the insurance industry, likely
from both an operating model and pricing
perspective.
While this is unwelcome news for many
businesses, they are not powerless. Now
more than ever, it’s essential for businesses
to take a proactive approach when it comes
to their risk management efforts and their
insurance policies.
Put another way: in an insurance and
risk environment with many unknowns,
businesses should focus on addressing the
factors they can influence.
5 KEY COMPONENTS OF A SUCCESSFUL
RISK MANAGEMENT STRATEGY
1. PINPOINT YOUR EXPOSURE AND COST
DRIVERS
2. IDENTIFY THE BEST LOSS CONTROL
SOLUTIONS TO ADDRESS YOUR UNIQUE
RISKS
3. CREATE A SOLID BUSINESS
CONTINUITY PLAN TO ACCOUNT FOR
DISASTERS AND OTHER UNPREDICTABLE
RISKS
4. BUILD A COMPANY FOCUSED ON
SAFETY
5. MANAGE CLAIMS EFFICIENTLY TO
KEEP COSTS DOWN
It’s important to remember that you are
not in this alone. To help you navigate the
hardening market, you need a partner who
understands your business and its unique
risks and who will advocate on your behalf.
Secondly, you need an insurance partner
who can tell your risk story to insurance
carriers in a way that will best position
your business come renewal time. Finally,
you need a partner who understands your
industry inside and out, the dynamic
insurance landscape, and how to provide
targeted loss control solutions.
If you’d like more information about the
market outlook and trends to watch, I can be
reached at 219-809-2233 or dgately@genins.
com.
Remember, in these uncertain times, we’re
here to provide the guidance and expertise
your business needs. We’ve been monitoring
the market throughout the year and will
keep you informed of any changes that
might affect your business. +
David Gately was raised in Michigan City. He
attended Purdue University Northwest and Indiana
University Bloomington. He began his insurance
career in 2011 and joined General Insurance Services
as a commercial lines agent in April 2012. Prior
to working in the insurance field, David spent 15
years in the business community managing and
running restaurants in Ohio, Kentucky, and Indiana
for Bob Evans Farms. He has obtained the CRM
designation (Certified Risk Manager). David has two
children, Caitie and Connor. He serves on the board
of directors for the Boys & Girls Clubs of LaPorte
County. David has had a lifelong love of martial arts
and holds a 4th degree Black Belt in Taekwondo and
a 1st degree Black Belt in Hapkido. In his free time,
he enjoys, exercising, reading, the beach, time with
his children, and riding his motorcycle.
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