“A simple touch makes a difference”: The role of risk prevention in client care

The COVID pandemic has changed almost everything about the way the sector works, acting as a catalyst for both change and disruptive challenges. Talking to IBZach Bowling (pictured), EVP at Amwins Group, said that although the pandemic has had a major impact on all insurance markets, the transport sector is changing.

“It's been a turbulent market the last few years,” he said. “In 2020, we saw a big impact especially in the car transporter segment. Most people didn't read 'the recession and the global pandemic' and say, 'Hey, I'm going to go out and buy a new car'.

The drop in demand for new cars during the crisis led to a sharp drop in car haulers, indicating a strong link between economic conditions and the transport insurance market. Despite these challenges, Bowling admits there has been a remarkable recovery.

“Four years later, it has gone back in the other direction. “The markets have come back and are very supportive of auto trucking and personal injury, seeing it as an opportunity to get some profit,” he said.

One of the critical aspects that Bowling emphasized here was the account-specific nature of their rates and post-pandemic coverage.

“Ours always depends on the specific account in terms of prices and the service provided. It's a frequency-driven class, so we don't have nuclear decisions as they are on the casualty side, but we have a lot of power,” he said. “We usually look at 'how is their five-year history?' Have they grown up? What technology are they using to improve their behavior?'”

When asked about assessing and mitigating risk, Bowling also points out the importance of being involved in their clients' businesses.

“Insurers with large protection, security, and training teams, and with checklists and policies in place, tend to perform better,” he said. “That simple touch makes a big difference in the overall performance of the account. Having strong finances and contracts in place with customers is essential. We can talk our way through a bad year or bad loss if we have written processes and procedures. If we don't have any of that information to back it up, and the insured is just focusing on the prices, it becomes a much bigger challenge.”

On the topic of technology and data analytics, Bowling is excited about the ongoing advancements in this field.

“We see more shipments from all over the country than any of our partners,” Bowling highlighted. By breaking down submissions to extract the necessary data for underwriters, insurers can make more informed decisions.

The shift to the use of dashboards and the downsizing of data interpretation represents a major improvement compared to the previous reliance on Word documents and PDFs. “We're looking at dashboards and drilldowns that enable us to view and translate important data into various aspects and metrics,” Bowling said. This initiative aims to facilitate the identification of new product opportunities and effective strategic alignment with carrier partners.

As the transportation insurance industry continues to evolve and change, stakeholders are encouraged to embrace technological advances, strengthen risk management processes, and prioritize the establishment of strong contractual agreements. In ever-changing markets, these strategies will be critical to ensuring resilience and capitalizing on new growth opportunities.