Part 3: Client Engagement
Next Generation Risk Engineering Market Study
This is Part 3 in a 4 Part series publishing the results of the Next Generation Risk Engineering Market Study.
Client Engagement - A Strategic Driver
Risk Engineering is a client-facing profession and the service quality provided by the Risk Engineer impacts the satisfaction of the client. This is the foundation of a sustainable client relationship. Risk Engineering is a «people business» and many times the personal touch or relationship history is integral to keeping an account with a specific client.
Many insurers try to differentiate themselves from competitors through technology investments, such as building self-service portals and convenient apps to improve client interactions and information transparency. Others differentiate themselves with additional Risk Engineering services to complement their existing offering with innovative solutions.
Service Offering - Broad or deep?
In the survey, respondents shared what service offerings their companies offer and where they thought their company held a comparative advantage. (Figure 10) As expected, offerings including, NatCat Analysis, Property Damage Analysis, and Business Interruption Analysis, and Replacement Cost and Loss Estimate Evaluation are considered core and supported by most respondents. While companies (or individual Risk Engineers) may apply different risk assessment philosophies depending on their background, the core of the service offerings stays the same.
Most commercial insurers offer bundled risk assessment services, i.e. services are only provided when a main share of the account is written. However, many insurers are trying to supplement the standard offering with additional add-on services like loss prevention trainings or Business Continuity Management (BCM) and Business Continuity Planning (BCP). On the other side of the spectrum, services like ultrasonic inspections or infrared roofing inspections that require specific tools and/or know-how are niche offerings. Some other services are driven by the jurisdiction, such as Boiler and Machinery Inspections in the United States.
Client Engagement Capabilities - Technologies
How do Risk Engineers interact with clients and how is this poised to change in the coming years? Responses to various survey questions on the topic suggest the industry is fairly confident in client engagement technology capabilities to enable desired engineer-to-client engagement over the next five years; however, many carriers are at the beginning of the investment cycle for such technologies. It is fair to say that the Risk Engineering community is filled with many senior representatives with industry experience that is measured in decades not years—both on the client side and the insurer side. Generational clash and adaptability issues can be seen across the industry and it takes time for new technological solutions to be entirely embraced and lay out its full potential.
Close to 100% of all respondents have a structured Recommendation Management and Follow-up process in place; however, only 43% consider their follow-up procedures as meeting expectations. (Figure 11) Many insurers struggle to handle a multi-channel approach and funnel client feedback and completion tracking in a streamlined, efficient manner.
Service Cycle Management is high on the list of many insurers, also. While 35% of all carriers consider their post-binding activities as advanced, many still don’t have capabilities in place that allow one to efficiently create Customer Service Plans, track and orchestrate service visits, or summarize the year-end findings in an automated Stewardship Report. Also, the tracking of jurisdictional objects and equipment is not yet standardized and lacks a full end-to-end integration into Risk Engineering and Underwriting systems.
Another key takeaway is that many carriers target strategic investments to build out and further enhance client portals to make interaction easier and cheaper through rolling off work into the hands of clients (e.g. client self-survey, recommendation completion tracking or impairment handling).
Stay tuned for the final installment of our Risk Engineering Market Study coming in the next few weeks. But why wait? Download the full report now by clicking below!