The Most Undervalued Asset in Insurance

Part 3: Multiplying positive touchpoints: Brand building strategies for insurers

Identifying high engagement customers

Insurance is rarely a high engagement purchase. Policyholders are advised to “read this policy carefully” when they receive their insurance documents, but in both the personal lines and small business markets, vanishingly few people will actually do this. But there are some markets and market niches where insurers may find more engaged customers. One is architects & engineers’ (A&E) professional liability insurance. Jim Schwartz, who heads the US A&E business of Beazley, a leading London-based insurer, notes that insurance is usually the third biggest item of expenditure for architects and engineers, after payroll and premises. Professional liability premiums for a small firm can be up to 5% of their revenues. This form of insurance is also closely bound up with an asset that is extremely precious to all professionals: reputation. “It’s not just money at stake when you have a claim,” says Schwartz. For an architect being sued by a client, it can matter a great deal which insurer is in their corner and how sensitive that insurer is to the architect’s reputational concerns. With this in mind, Beazley offers extensive advice to help reduce the risk of its clients being sued in the first place, multiplying touchpoints with its clients. One in every four policies will have a claim in a year. But Beazley often interacts with clients on a monthly basis with risk management advice, conducted through webinars, newsletters, and a legal contract review service that is highly valued by small firms.

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