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Insurance Renewals – Have a Strategy (or suffer the consequences)

At ABM Risk Partnership, we have often talked about the importance of selling risk, not buying insurance. Indeed, this has been something of a mantra for us.


The insurance market is throwing up challenges across all classes of insurance. Uncertainty about the full impact of business interruption claims related to COVID-19 has fuelled changes in insurers’ appetite for risk, seeing many underwriters walk away from risks they have previously covered, or imposing significant premium increases for continuing cover. It’s affecting all classes of insurance, with Directors & Officers, and Professional Indemnity / Public Liability presenting particular challenges.


In their Q4 / 2020 Insurance Market Report, Gallagher provided a great graphic of the core dynamics of the insurance market cycle.




Premiums are up, deductibles are up, exclusions are up, coverage is down. It’s a very hard market. Having a strategy to manage and renew your corporate insurance program is absolutely essential.


Some of the questions you should be asking now include:

  • What commentary is your broker providing you regarding market conditions, and expectations for renewal?

  • What does your claims experience tell you about the effectiveness of your controls?

  • What level of direct engagement do you have with your underwriters - do they know how effectively you manage risks?

  • Is your broker rewarded for results against KPIs?

ABM has experience as a broker, underwriter and buyer of corporate insurance programs. Our experience includes development and execution of strategies to place coverage for distressed buyers based upon improvements in risk management framework, execution, and culture. We have the runs on the board evident through successful placement, coverage and premium savings.


Having the right level of expertise, market knowledge, and underwriter relationships is critical. But the most important part of your strategy must be robust Risk Management – giving underwriters confidence that your risks are known and understood, and controls are in place and effective. You must be engaging with your underwriters, with the full support of your broker, to sell your management of risks.


Regardless of when your program renews, you should be thinking about your strategy with your broker now. To be truly strategic in approach, it should be a long-term strategy with clear specific targets to be achieved.


Not happening? It’s never too late to develop a strategy, particularly when the consequences of not doing so could be so high.


ABM can help you by providing a buyer’s perspective on your insurance strategy. Contact us to find out more.


At ABM we believe that from risk comes opportunity.




ABM Risk Partnership