Is your business resilient enough to withstand a dynamically changing insurance marketplace characterized by reductions in carrier capacity, stricter underwriting standards, higher premiums, and restricted coverages?
Before you answer that question, consider the following market dynamics that are having a big impact on how insurance carriers evaluate risk and underwrite coverages:
Increased frequency and severity of natural disaster events
Increasing material and construction costs
Increasing litigation and broader definitions of liability
Increasing frequency of cyber-attacks on medium and small-sized companies
Insurance carriers exiting entire industries
Decreased insurance underwriting discretion
Continued economic uncertainty
Prolonged periods of historically low interest rates
The current hard insurance market cycle is not likely to end anytime soon. How you evaluate and position your business risks to the insurance markets matters now more than ever. Your business risk profile is like a credit score and insurance carriers give priority to risks that have the best “score”. The 4sight™ process is about taking control of your business risk profile and securing favorable long-term insurance terms regardless of insurance market cycles.
What is 4sight™?
Our concept of 4sight™ draws from the idea of foresight, defined as "the ability to predict or the action of predicting what will happen or be needed in the future." 4sight™ represents a mindset, a perspective for understanding that gives us the ability to provide custom business risk optimization solutions.
Fundamentally, 4sight™ is a process for objectively analyzing your business's risks and developing a business risk profile. Your business risk profile accounts for business aspects that contribute to your Total Cost of Risk (TCOR). Your TCOR is the cost structure (direct and indirect) associated with managing your business risk exposures.
The 4sight™ process and “risk lenses” allow you to understand your TCOR cost structure and identify opportunities for improvement. As your business grows and changes, so does your TCOR cost structure. The 4sight™ process is designed to adapt to your changing business conditions and shifting risk tolerances – this is risk optimization!
What is a Business Risk Profile?
A Business Risk Profile (BRP) is the product of 4sight™ analysis. The BRP is evergreen and changes as your business grows and risk exposures and tolerances change. Our team uses your BRP to communicate critical information about your business to insurance underwriters (in this regard, think of your BRP as a “credit report” that insurance underwriters use to evaluate risk). We also use your BRP to create a baseline for setting service priorities, evaluating exposure controls, recommending coverage lines, and developing renewal strategies. The BRP along with other accountability tools help keep us on the same page and moving in the right direction!
How is 4sight™ a Process?
Evaluation of your business never ends! We establish touchpoints throughout each policy cycle to discuss business changes that may impact your risk exposures and tolerances. 4sight™ is designed to adapt to your changing business conditions. Formal client service plans are developed to track essential service commitments, service priorities, and value-added service recommendations. Service plan commitments are tracked to completion in our electronic agency management system. An initial service plan may look completely different than subsequent service plans - it all depends on your business conditions, risk exposures, and risk tolerances!
The value of 4sight™ is realized when business owners have control over their TCOR. Costs associated with risk should be as predictable as any other business expense. 4sight™delivers the structure needed to determine what’s working and what isn’t and helps business owners allocate resources strategically. Strategic decision-making drives better outcomes!