Regardless of your personal position on climate change and the potential threats in its wake, it is important that insurers focus on what can be done.
If climate change ultimately proves to be as much of a risk to insurers as predicted, doing absolutely nothing to capitalize on the current state of affairs may be far worse than any other decision. A scaleback of services is generally not viewed as a viable choice in the face of such uncertainty and chance. You risk dropping behind in a competitive market and making your previous position unrecoverable, particularly if no drastic event occurs. Increases in the rate that weather-related events occur are nothing new. In fact, since the 1980s weather-related losses have quadrupled in the United States. Simply put, these unfortunate events happen and will always happen. The industry has survived, and even thrived in recent years. The focus should then lie elsewhere given that control is not an option.
The Millennial Market
Millennials are dominating the home buying market while also being the demographic that most passionately believes in the threat of climate change. Using this to your advantage can be both extremely profitable for insurers, and reassuring for millennial homeowners who are worried about the possibility of weather disasters. Utilizing residential inspections to confirm or encourage a homeowner’s level of protection against such events is often the only step taken, and can leave homeowners feeling underinsured. Pivoting the language of additional coverage offerings or including mentions of protection in the event of climate change-related disasters may be a very attractive option to introduce to insureds.
An in-person, seasonal residential inspection can be used for similar effect, every step is to ensure residents have the highest level of protection possible with adverse weather conditions in mind. For those who know where to look, the millennial market is rife with the opportunity to offer supplementary coverage services to insureds. Using this advantage can increase the likelihood of maintaining profitability even in the event of a disaster.
The climate change issue today is more than simply a battle of controversy and politics. As proven by the devastating hurricanes in our country’s recent history, adverse weather events and their potential to occur are of every importance to the property and casualty industry. Increasing overall profitability now with additional offerings may help the industry survive the possibility of crippling events in the years ahead.
Insurance Risk Services provides thorough and accurate residential inspections and underwriting support so that your business can remain profitable. We treat your insurance customers with the friendliness and professionalism they deserve, increasing customer loyalty and retention while also creating further opportunities to provide services. To learn more about our commercial or residential inspection services, contact our team today.