The standard insurance company, in general, is in a lot of trouble. Sadly, and frustratingly, a lot of the general short term insurer’s challenges have been passed on unfairly to the domestic, commercial and industrial consumer. Not even the best underwriting standards have been able to stem the tide of calamitous losses. As a consequence, the standard insurer has lost a lot in revenue, premium income and the ability to pay claims fairly and equitably.
Commercial, industrial and business clients have had no alternative but to look elsewhere for a more sustainable means of containing their own individual losses and being compensated for them when they occur. The domestic insured, unfortunately, limited in resources, has had no alternative but to stay with the prudential service and carry the cost of high premiums. The one alternative of simply taking a chance of not being insured at all is a risk too great to take.
Should the worst happen, the domestic insured would lose everything, the roof over his head and all the contents that he values. Fortunately, businesses do have some leeway. Captive insurance is here to stay. While standard and general insurers are forced to lay off thousands of office bearers across the world, the captive insurance office has a rather interesting staff organogram by comparison. Yes, this office still has its underwriter.
It also has its risk management consultants and loss adjusters. But it will also have its business adjusters too. Financial service consultants have their role to play as well. And so too accountants and bookkeepers. There is less reliance on general staff as this office takes full advantage of software capabilities. To this end, the office needs to have its fair share of IT consultants and competent data administrators.