Global Risk Management
The International Working Group hosted over 60 international risk placement executives among CIAB member firms from the United States and around the world with an objective of expanding members’ business horizons and delivering expert insights on captives, brokers’ value proposition in the context of emerging risks, and components of an effective partnership with insurtech.
Caterpillar’s Santiago Garcia shared his experience on using a captive to meet dealerships’ needs for extended warranty and third party liability coverage. From Caterpillar’s standpoint, the captive has been an optimal risk solution to meet those needs, but it also provided a return on investment. Caterpillar’s extended warranty does not only secure risks, but it also generates a profit. For intermediaries, captives entrench brokers closer to clients by helping them run risk transfer effectively. The captive’s success has recently encouraged Caterpillar to move its employee benefits to the captive too.
Global Risk Management
At the risk manager’s panel, participants represented companies whose business models and particular sectors they operate in define their insurance needs and how they make their decisions about risk coverage. As Bechtel oversees infrastructure programs for a limited period, a continued relationship with local brokers may not be a priority. Environmental risks are important for Solvay, while Thales is concerned about R&I and IoT. The panelists identified communications as a persistent issue with brokers, and trust remains the most valuable asset. Some clients may maintain a decentralized platform for risk placement, so having one or a limited number of brokers may be a security to counter any negative effect of decentralization. Brokers remain helpful in sorting out high volume claims, while clients may prefer to manage large deductible claims themselves and use brokers as a source.
The Role of Technology
With 30% of millennials entering the workforce within a decade, the role of technology in the sector is also increasing. The tech discussion focused on guiding brokers in selecting the right solutions to streamline processes and attract talent. For brokers of the future, the combination of robotics and AI will be a recipe for effective communication with clients and carriers, even though AI solution costs stay high. Although AI and tech solutions require a culture shift in the agency, no new skills may be required of brokers themselves. The objective of technology is to free up resources, time and energy to maximize time with clients. Creating multiple effective touch points through technology is a means for a successful business. Data is essential, but it takes effort to analyze it. AI can be helpful in this effort, as well as in predicting future claims.