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Economic uncertainty cannot always be avoided with increased inflation and cycling threats of recession, but preventing losses with Risk Management can mitigate further financial troubles by preventing costly claims from happening in the first place.
Not every loss can be prevented, so having comprehensive policy coverages and expert adjusters will assist our insured partners and protect their interests in any economic environment.
December 2022
Blake Berry, Vice President of Claims N2G & Brittany Corner, Claims Consultant N2GMILAN, Italy
As the world faces inflationary constraints and cycling threats of recession, it’s more important than ever for carriers to protect insureds from costly claims.
Three primary factors are contributing to an unstable economic environment for insureds:
- Increased costs: Because of rising costs in supplies due to inflation and staffing wage increases, cutting costs has become a focus for many businesses. While insureds are exploring ways to reduce their spending, some are considering restructuring insurance coverage to save on premium expenses. This temporary money-saving strategy may have long-lasting financial repercussions in the event risks are not properly protected.
- Qualified worker shortages: It’s no surprise to those living in the United States that a labor shortage has been near all-time high levels with 10.2 million job openings according to the U.S. Bureau of Labor Statistics. This impacts many lines of business across the board. For property specifically, fewer skilled construction workers leaves our Insureds exposed to lower-quality structures. An inexperienced and/or overworked labor force can lead to faulty construction and can create a multitude of problems leading to increased claims frequency and costs.
- Impending recession: Economists have been predicting that we will face a recession in 2023. If customer spending is reduced, insured revenue streams will almost certainly decline. Loss of revenue could force insureds to lay off staff or implement cost containment strategies as mentioned above. This may lead to perpetuating cycles of financial insecurity, leaving insureds vulnerable to uncovered claims.
- Proactive Risk Management: Enlist N2G’s risk management services to proactively mitigate your exposure to costly claims. Evaluating potential hazards before they occur will leave insureds in a better financial position if the likelihood of a loss is reduced from the onset. N2G grants access to its global network of risk engineers to every policyholder. This included on-site surveys and access to online risk management resources.
- Robust Coverages: Not every loss can be prevented, even with high-quality risk management services. Having knowledgeable underwriters, as found at N2G, can give you confidence that you are well-protected in the event of a loss. Our expert underwriters can tailor policy coverages to the specific needs of every insured, extending the proper coverages to each line of business.
- Expert Adjustment of Claims: When losses occur, it’s always important to have highly skilled and specialized adjusters working on your claims. This is especially important in an unstable economic environment. Current exposures include increased claims costs, qualified worker shortages, and cycling threats of recession. It is increasingly important to have prompt resolution of claims to mitigate these exposures, so the insured can return to regular business operations. N2G utilizes a global network of experienced adjusters who specialize in claim resolution across all lines of business. This multinational framework ensures best claims practices and customer satisfaction across the globe.