Global Spotlight: What We’ve Learned From La Niñas and El Niños

Scott Newland, General Manager – Government and Long-Tail Claims, has worked through many of these severe weather events and shared his top tips for carriers.

 

  • Q) What do we typically see during a La Niña or El Niño event?

Scott Newland (SN) Typically for an El Niño we see an increased risk for widespread, damaging bushfires. In hot, arid climates across Australia and North America, these bushfires can quickly see damages rise into the millions as established communities are threatened. On the other hand, during a La Niña, carriers should expect to see an increase in rain events, leading to flooding, tropical cyclones or severe storms causing damage to homes and businesses.

 

  • Q) Do you believe one is worse than the other?

SN) No, both can have devastating impacts to both individuals and communities.

 

  • Q) What can carriers do to prepare for a declared event?

SN) It is critical carriers have a documented event or surge plan for the various event types they will face (e.g. flood, bushfires, cyclone), and regularly test this plan. It’s not good enough to simply have the plan stored away, it needs to be regularly reviewed and tested to make sure it is really up to scratch.

This plan should include how the business will mitigate risks for its customers, clients and its own operations. This could include scaling up the headcount or outsourcing during an event to ensure you continue meeting customer expectations.

 

  • Q) What are the possible outcomes for a carrier who is unprepared for a declared event?

SN) The old adage is true, failure to plan means planning for failure. If you are not prepared for an event you could see not only a loss of customers due to reputational damage from missed expectations but also employee burnout and increased turnover and cost leakage as a result of poor training practices, processes or financial controls.

 

  • Q) What advice would you give to a carrier who wants to be better prepared for La Niñas and El Niños?

SN) Make sure you have retained a dedicated catastrophe or crisis management team, who has proven capability across technical expertise, scalability and the rapid deployment of operational teams. These factors are critical to whether your business sinks or swims during, and after, a surge event. Pre-event training needs to be supported by a highly-experienced team of catastrophe claim experts, with the ability to outsource and scale your business at short notice. This focus should mitigate additional pressure on your business by providing the following:

    • Pre trained Event resources
    • Deployment of designated Event call center response
    • Establishment of dedicated Claims response teams
    • Management of portfolio specific tranches

 

If you are looking for more experienced advice on how to optimise your business during La Niñas or El Niños, reach out to Gallagher Bassett today.

More Posts

Insights

Introducing SMART Benchmarking, a new Dashboard from LUMINOS

Digital technology is already one of the biggest trending topics this year, and carriers are looking to tap into new capabilities to improve claims programs. We are excited to introduce you to the new Luminos dashboard, SMART Benchmarking, a unique approach to claims outcomes offering unparalleled data insights into your performance. Explore the benefits this could add to your claims programs in 2023.

Read more
Insights

Finding Your Differentiator

Now that we’ve entered 2023, there’s never been a better time for mutuals and mid-markets to ask themselves where they fit in today’s industry. These answers will not only inform future business decisions but help you stand out from the competition. Caryn Siebert and Amy Cooper share the top tips to find your market differentiator.

Read more
Insights

Overcoming legacy IT infrastructure challenges

As a global carrier’s legacy source systems were set to be discontinued, find out how Gallagher Bassett stepped in to take over management of its portfolios for Workers’ Compensation and primary Property & Casualty lines.

Read more

Keep your finger on the pulse of the latest industry news and insights.

Sign up to our monthly newsletter today.

Hi there!

Want to drop us a line?  You can get in touch by filling out the form below and we’ll get back to you as soon as possible!