One step ahead: How brokers can help customers prepare for today’s emerging risks

• From digitisation to people, the way the world has responded to the pandemic has changed business forever
• In a world of change and uncertainty, new risks are emerging constantly
• The risks your customers now face may be significantly different to those they faced two years ago.

If there are two words that sum up the past two years, they are ‘change’ and ‘uncertainty’. We’ve been forced to change many aspects of our personal and professional lives – including the way we work, the way we buy and sell and the way we live – and businesses have been forced to change, too.

And it’s all been played out to a backdrop of uncertainty.

With change comes new and evolving risks – and there are a number of challenges on the horizon that businesses need to be ready to tackle.

"Brokers can offer significant value to their customers by leading conversations around those new and emerging risks,” says Elliot Hill, QBE’s General Manager, Partnerships and Specialty.

"By understanding what’s on the horizon, in addition to the here and now, brokers can reinforce that position as a trusted and valued business partner."

Simon Petie, Director of Escalate Consulting, is a risk and resilience consultant to QBE. He says, "The world is changing rapidly, it’s a different place to what it was even five years ago. And just because we’ve done something in a certain way in the past, it doesn’t mean it’s the right thing to do now.

"The insurance landscape has changed, too. Just because you’ve been able to get insurance for a customer in the past doesn’t mean you’ll automatically be able to get that risk written in the future. It’s vital you’re aware of the emerging risks. If you’re not looking ahead, you’re going to be left behind."

So, with that in mind, here are the four key risks brokers should be aware of for 2022.

Consumer behaviour changes and digitisation

Through the lockdowns, which became a fact of life for many around the world, businesses were forced to shift to different operating models, while customers were forced to change the way they purchased goods and services.

And, while that pivot – as we quickly came to know it – was necessary, a rapid change of strategy may have left businesses exposed to new risks.

"They were simply doing whatever they needed to do to keep the business afloat, but by doing so there are a number of potential risks, in particular the collection of data, that businesses may have exposed themselves to," says Petie.

Hill says that businesses may not have thought to check in with their broker, and consequently it offers a good opportunity to have a thorough re-evaluation of the risks they face.

"Start from scratch," says Hill. "Work through with your customers what their business looks like today and how business is being conducted, as there’s a strong possibility they may have exposed themselves to risks that they’ve not even considered."

Widening digital divides

While many businesses have quickly embraced digitisation, there are others that haven’t – and there’s a significant risk that those businesses will be left behind as customers and clients seek out digitally-led businesses.

Fear of the unknown can be overwhelming for some businesses, and brokers can play an important role in helping to navigate a sometimes complex path.

"Brokers can give businesses the reassurance and confidence they need by providing information to customers about the policies and protections that are available," says Petie. "You can take the fear out."

Using your network to introduce customers to other businesses that can help them undertake a digital transformation project is another huge value add and can ensure you stay close.

Legal and regulatory uncertainty

The pandemic has resulted in frequent legal and regulatory changes that have simply meant businesses have needed to operate in an environment of uncertainty – and while this continues to prove challenging, it’s important to not become blinkered about where legal and regulatory change can come from.

"We’ve learned, over the past two years, in a sometimes painful and difficult way, that we are at the mercy of the government of the day, in terms of what they want to put in place for our own protection and safety," says Petie.

"We’ve seen significant shifts in regulation and policy compliance requirements by governments, and it’s important to be aware of what changes are coming in the industries your customers work in."

No matter what the legislation is related to – as we’ve seen in finance – new regulation will create new challenges.

"By asking ‘what are your compliance obligations?’, ‘how have they changed?’, and ‘what changes do you see coming in the next few years?’, you can identify new risks that may be on the horizon," says Hill.

Mental health and people risks

There’s no denying that the past couple of years have been mentally tough. As employers, businesses have a responsibility for their staff – and they present an emerging risk as working arrangements change once more.

"What are the policies and coverage that businesses have for their people, and what is in place to cover owners, too?" asks Petie.

From fatigue and stress to the new pressures created by more change, businesses face significant people risk during 2022 – and businesses need risk mitigation plans to minimise the impact of another disruption.

Helping your customers set up for a successful future

By helping guide customers through the complex world of new and emerging risks, brokers can provide genuine added value as a true risk expert.

"One of the roles of the broker is to provide that high-level insight that helps their customers stay one step ahead," says Hill. "By planning conversations with customers in different sectors, continually speaking with them and sharing information, you deepen that relationship with every interaction."

And, by doing that, you can ensure your customers not only have insurance in place, but they have the right insurance for the risks they face today.