What’s irreplaceable in insurance post-pandemic?
What’s irreplaceable in insurance post-pandemic? | Insurance Business Canada
Insurance News
What’s irreplaceable in insurance post-pandemic?
Extreme growth doesn’t mean you have to cut down on client relations
Insurance News
By
Chris Davis
Brokers are facing increasingly complex market challenges that mean they need to upskill or move on. Speaking to Insurance Business, Aneeza Ahmad (pictured), head of commercial risk placement and new business at KASE Insurance, said that adaptability and resilience are the new order of the day for any broker worth their salt.
“Communication, meaning checking in with clients regularly and ensuring alignment with them throughout the year, has also been really crucial,” she said.
In an environment where market conditions can shift swiftly, Ahmad underscores the importance of brokers possessing both passion and perseverance. This combination, she believes, is what drives brokers to persist in the face of challenges and remain committed to their long-term goals.
“Brokers with grit are those that remain resilient, adaptable, and focused on delivering value to their clients, even when obstacles might arise,” she told IB. “This tenacity not only helps brokers overcome difficulties, but also builds trust with clients who can rely on them to navigate complex situations with determination and integrity.”
‘Baked goods, wine or just to say hello’
This effective communication, according to Ahmad, extends beyond periodic updates and occasional check-ins. Maintaining a strong relationship with clients involves frequent and meaningful interactions.
“It would involve more frequent communication via telephone calls, and even going to see the client makes the world of difference,” she explained. “We endeavour to go and visit our clients at least a couple of times a year with some baked goods or a bottle of wine just to say hello.”
Furthermore, KASE Insurance leverages social media to stay informed about their clients’ activities, which enables them to engage with clients on a more personal level.
“Following our clients on social media keeps us informed on their day-to-day and events that they have coming up,” added Ahmad.
And, in today’s market of extreme growth, keeping up with everyone and everything is no mean feat. For Ahmad, she’s particularly excited about two key areas: cyber insurance and climate risk management. Research from Security.org found that the global cyber insurance market was worth $13 billion in 2023, with a forecast suggesting it could grow to $22.5 billion by 2025.
“With the rapid escalation of cyber threats, from data breaches to ransomware attacks, businesses of all sizes are now recognizing the need for comprehensive cyber coverage,” Ahmad added. “And it isn’t just about large corporations anymore – even smaller businesses are being impacted. We’re definitely seeing a significant uptick in demand for cyber insurance for companies of all sizes.”
And the same goes for climate risk management. Environmental concerns are becoming more pronounced and very unpredictable with the weather patterns that continue to pose threats. As such, businesses are seeking ways to protect themselves against climate-related risks, more so than ever. This includes everything from flood and wildfire coverage to more specialized policies that address the unique risks that are posed by climate change in specific industries.
“As businesses become more attuned to the long term impacts of environmental uncertainties, the demand for this product is definitely on the rise,” added Ahamd. “And that’s across all industries across Canada – it’s becoming a huge concern.”
‘With innovation comes risk’
The delicate balance between innovation and risk management is another area where commercial insurance providers must tread carefully. Ahmad acknowledges the necessity of innovation in staying competitive but warns against recklessness.
“It can be so tricky because, on one hand, innovation is so essential… But then with innovation comes risk, and that’s where a measured approach is very crucial,” she said. “It’s about being bold but not reckless. We have to thoroughly understand the risks associated with new ventures and carefully assess them against potential rewards. This would mean not just relying on traditional risk models, but also incorporating forward thinking strategies that account for emerging trends and technologies. I think that’s where collaboration plays a really huge role. And, by working closely with underwriters, actuaries and other experts, we can ensure that innovative solutions are backed by sound risk management practices.”
Looking ahead, as businesses increasingly integrate artificial intelligence (AI) into their operations, the question of how insurance should adapt to these new technologies is becoming more pertinent. Ahmad predicts that AI-specific insurance policies could become a reality in the future, although she cautions that it might take time for the industry to catch up.
“I would say that it’s likely that we’ll see AI-specific insurance policies becoming more prevalent in the future,” she said, adding that this development would likely be closely tied to the ongoing evolution of cyber insurance. And, while the insurance industry is known for its cautious pace, Ahmad is confident that AI will be a significant factor in shaping future insurance products.
“Ultimately, I think the key is to embrace innovation, but also maintain a strong foundation of risk management at the same time,” Ahmad added.
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