Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor!

Philadelphia Insurance Companies-sponsored Business Insurance Risk Perspective

Why trust is the cornerstone of effective risk management

Philadelphia Insurance Companies' approach yields results in reducing clients' losses

By Mark Konchan, Senior Vice President of Risk Management Services, Philadelphia Insurance Companies and Andrew Shockey, Vice President of Risk Management Services, Philadelphia Insurance Companies

Many insurance companies say they offer risk management services. Some make proprietary risk management tools available to their customers. Few, however, deliver a consistent, coordinated approach to helping their policyholders control losses like Philadelphia Insurance Companies (PHLY) does. At a time when risks are increasing in frequency, severity and complexity, insurers can serve as important partners in risk management.

PHLY believes an effective risk management approach depends on several factors. These include:

Trust

This is the cornerstone of all relationships, and in a risk management context, it should be the foundation on which insurance partnerships are built. When a customer has trust that its insurer is looking out for the customer's interests, and not merely its own, honest conversation and collaboration can occur. This transforms insurance from a business transaction to a relationship where each partner can make measurable progress in mitigating or preventing loss.

Communication

Once trust is established between a policyholder and its insurance company, productive conversations can happen. Openness and ease of conversation allows insurers to better understand customers' needs and offer advice, even when those might be quite sensitive.

An example of a sensitive conversation is discussing the risk of sexual abuse and molestation in religious or nonprofit and social services organizations. Protecting the vulnerable from these dangers is a responsibility shared by organizations and communities. An insurance company with expertise and professional alliances in this area can help such organizations improve their training and practices, not only to meet but exceed state and federal standards to achieve the point of optimum safeguarding.

Sharing learnings from claims in this industry can have a big impact on reducing future incidents. It all begins with an invitation to ongoing communication with the customer about risks and a commitment to working together.

Teamwork

Insurance is traditionally known as a relationship business, and people truly do make a difference in helping customers manage risk. Having an experienced team serving a policyholder is just one part of the process, however. Bringing the insurer's team together with the customer at the inception of a policy is a good way to build a strong relationship that will demonstrate its value when a claim arises.

Imagine the results when an insurer only assembles its team members after a customer files a claim. Each member of the team might have a great deal of expertise, but if they don't work together, inevitably the claim response will be disjointed and some important items may even fall through the cracks. At the least, the customer may experience confusion and frustration, not knowing who is handling the claim at any given point in the process.

Contrast the "fire drill" approach with one that introduces the team to a customer well before any claim occurs. Getting together with the customer at the outset is a good way to bring clarity and confidence to the relationship, making the process smoother in the event that a claim occurs.

Insight

Every insurance company on the planet has data, volumes of it. What customers need to get control of their exposures and manage risks is more than just data; they need insights. An insurer that offers extensive benchmarking and informational resources to every customer is a valuable source of insight and risk education. When an insurance company does that, it delivers more than just a promise to provide financial protection. The insurer ultimately can improve the customer's knowledge about risk management and influence behaviors that lead to losses.

Risk management tools

Offering tools to help customers control losses is a great idea, but that's not necessarily new. What matters is not so much the tool itself but how it is deployed to benefit the customer. Providing tools to a customer will not be fully effective if the underlying risk management or safety program needs improvement. For this reason, an insurer's risk management team should meet with the customer and review the customer's practices.

For example, Philadelphia Insurance Companies has been utilizing a digital technology tool for about six years that has dramatically improved fleet safety, at no additional cost to policyholders. PHLYTRAC is a telematics system that provides real-time insights to correct risky driving behaviors and reduce losses. Before enrolling a customer in PHLYTRAC, Philadelphia Insurance Companies' risk management team takes the time to review with the customer its fleet safety, vehicle maintenance and inspection, and driver testing programs. Monitoring risky driving behavior won't by itself lead to fewer accidents — but using PHLYTRAC's findings to change risky behavior and improve the customer's programs does. With more than 1 billion miles protected by PHLYTRAC to date, this approach has resulted in a 19% reduction in accident frequency. It's getting customers to a better — and safer — place.

Similarly, Philadelphia Insurance Companies has invested in a technology to help customers reduce property losses. PHLYSENSE is a sensor system that delivers real-time, actionable alerts to protect property from water damage and extreme temperature conditions. 

The results of these initiatives have been nothing short of phenomenal. Philadelphia Insurance Companies' customers have embraced the technology tools because they are reducing losses, improving risk management programs, and keeping their people safer.

  

Mark Konchan (left) is Senior Vice President of Risk Management Services at Philadelphia Insurance Companies. Andrew Shockey (right) is Vice President of Risk Management Services at Philadelphia Insurance Companies.


The information and suggestions presented by Philadelphia Indemnity Insurance Company is for your consideration in your loss of prevention efforts. They are not intended to be complete or definitive in identifying all hazards associated with your business, preventing workplace accidents, or complying with any safety related, or other laws or regulations. You are encouraged to alter them to fit the specific hazards of your business and to have your legal counsel review all of your plans and company policies.