06
What can buyers do to improve results?
Reflecting on the first half of 2022 there are a number of steps that buyers can take to improve outcomes with their PI insurers:
- Present better quality underwriting information to insurers - this should include key risk management information including vetting of subcontractors, management of design risk, the commercial controls in relation to contractual undertakings and a clear insight into the company’s position on ESG.
- Engage with insurers as early as possible - be prepared for a longer renewal cycle; a minimum of three months, ideally allowing six months.
- Invest time to meet with insurers to build relationships and trust - differentiating your business is key, as is clearly communicating your approach to reducing risk. Resolving claims issues also becomes easier with a strong insurer relationship.
- Addressing claims head on and acknowledging the issues and what has been done to rectify these will stand you in the best stead with underwriters.
- As competition between insurers remains a challenge, buyers and their brokers have to be more creative - it’s no longer possible to manage the cost of PI insurance by marketing risks and using competitive pressure.
- Present better quality underwriting information to insurers - this should include key risk management information including vetting of subcontractors, management of design risk, the commercial controls in relation to contractual undertakings and a clear insight into the company’s position on ESG.
- Engage with insurers as early as possible - be prepared for a longer renewal cycle; a minimum of three months, ideally allowing six months.
- Invest time to meet with insurers to build relationships and trust - differentiating your business is key, as is clearly communicating your approach to reducing risk. Resolving claims issues also becomes easier with a strong insurer relationship.
- Addressing claims head on and acknowledging the issues and what has been done to rectify these will stand you in the best stead with underwriters.
- As competition between insurers remains a challenge, buyers and their brokers have to be more creative - it’s no longer possible to manage the cost of PI insurance by marketing risks and using competitive pressure.