Client strategies insurers should implement amid climate change

When a natural disaster strikes, it is essential that insurers are properly staffed to help clients affected. (Credit: Onur/Adobe Stock.)

The impact of climate change is no longer debatable. A McKinsey & Company report concludes that stronger and more frequent natural disasters “are destroying homes and businesses at record-breaking rates and putting entire food systems at risk.” Further, McKinsey warns that changes in global climate “are locked in for at least the next 10 years.”

For property and casualty (P&C) insurers, this means business-as-usual is insufficient. These companies no longer can afford to treat climate-related catastrophic events as isolated incidents. Numerous white papers have been published on the need for new pricing models, coverages and stress tests. The one component insurers should not lose sight of amid the upcoming surge of natural disasters is their client experience. They must develop permanent strategies to help clients whose homes, properties, and businesses are damaged by fires, hurricanes, floods, deep-freezes, tornadoes, and other natural disasters. Here are several strategies insurers should implement immediately to prepare themselves and better assist policyholders in their times of urgent need.

Be agile in the customer journey

As a result of the surge in natural disasters, insurers are being inundated like never before with calls from traumatized customers seeking immediate help. These disaster victims, many of whom have lost homes, are facing a major crisis in their lives.