Burglary and theft are by far the easiest risks to counter via property owner action. The bare minimum standard of having a traditional alarm system is not always enough to discourage would-be criminals from committing theft and burglary. The predictably slow response time and failure to actively prevent crime in the first place squarely place them further in the outdated category. The rising popularity of smart home features and advanced alarm systems provide another level of protection that is better at reducing the risk of burglary and theft. Encouragement of use via incentivization and discounts can turn the tide of the insurance risk level. For commercial insureds, complete coverage with security cameras is a powerful deterrent, albeit not one every insured is willing to pay for. Other risks may be apparent during a commercial property inspection, offering an opportunity for education. Helping insureds to strike a balance between what is necessary and what is effective will often depend on the relationship between insurers and the insured, leaving hands-off insurers at a disadvantage.
Advantages And Disadvantages Of The Connected Lifestyle
The widespread usage of mobile apps offers insurance carriers an additional way to market their services, promotions, and important information. Having pertinent information and reminders available to insureds within a mobile app can help reduce risk. As incidences of theft increase during the holiday season, there is no better time to remind insureds of steps that can be taken to reduce the likelihood of being targeted. Information available at their fingertips on their most-used device is far more useful than an online blog that they may never encounter organically. Still, insurers must be cautious about the method and frequency of reminders and other notifications provided. The primary disadvantage of the device-heavy lifestyle is more attractive targets for theft, ultimately resulting in higher claims. Claim limits can address the level of covered losses and also open the door to expanded coverage offerings.
Seeking out appropriate avenues to reduce insurance risk can sometimes feel like a game of cat and mouse. Empowering or encouraging the customer to assist in achieving risk reduction is overlooked far too often while being an effective route to take. Generally, most would prefer to have their property as opposed to the suggested value of it when all is said and done. This leaves insureds open to discovering the best ways to protect the property they care about, especially in high-risk areas. The drive for property preservation should be capitalized on as the benefit applies to both insurers and the insured.
Insurance Risk Services has provided risk reduction services to our partners and clients for over 35 years, through insurance inspections and underwriting support. To see how we can help you maintain profitable underwriting contact our team today.
