2011's Catastrophes: $435 Billion in Losses
Along with the drive and energy invested in tackling a new year and its challenges comes reflection upon the year just passed. Recently, a major report detailing 2011's estimated losses in relation to global climates and catastrophes, with staggering figures turning many heads.
The report suggests that a total of $435 billion in economic losses occurred over the year, with $107 billion in total insured losses.

From Japan's deadly earthquake and tsunami to major earthquakes in New Zealand, the year saw many record-breaking catastrophes –and tough times for businesses and citizens alike as a result. This report makes clear the urgency with which the insurance field must act to help minimize the damages caused by natural disasters and related problems.

By being responsible players in the global game of efficiency and innovation, we can help curtail the steady rise in annual destruction brought about by these events. With so many losses left uninsured, we also know it's up to us to convey the importance of quality insurance products and disaster mitigation programs and processes to firms and individuals, protecting the world's businesses and saving households from excessive financial strain. We hope to be a part of a productive 2012; one that fights back against 2011's colossal damage figures.
 

International Broker Survey: What Customers Care About Most There's no question that creating quality products and delivering them with great service is at the heart of keeping customers happy. But there's something to be said for knowing what clients' biggest concerns are, and how to address those concerns.

Recently, a group of twenty five insurance firms from around the world was surveyed as to what they believed their corporate clients cared about most. While there are many possible answers, the most popular choice probably isn't surprising: price. In a difficult economic environment, buyers continue to tighten their budgets and look for ways to lower premium bills.

At the same time, however, the survey shows that firms believe their clients are worried about having enough coverage for natural disasters and supply chain issues, both of which have been in the spotlight following last year's catastrophes in Japan. Balancing more sensible product costs with coverage that addresses today's changing concerns may be a great challenge, but it's one we're excited to prepare for and to meet.

The more we know about our clients' top priorities, the better able we'll be to create true utility for today's companies –both as a single company and as part of the strengthening international network.

More Online Shopping Means Greater Business Risk The business world is becoming increasingly aware of the many threats involved in operating business online. Yet a recent report published at Lloyd's of London suggests that companies face greater risk than realized –or adequately covered-- when offering items for sale over the internet.

With the season's busy holiday shopping over, many businesses are finding their proportion of online sales is sharply on the rise. Unfortunately, this also means that the risk of losing reputation, angering customers with unexpected outages, and suffering from cyber attacks is more prominent than ever.

With the rise in online commerce comes a responsibility among businesses to protect themselves and their assets in the face of new and complex threats. We believe it's also our responsibility as members of the global insurance community to help businesses understand how these risks are formed and how they can be effectively mitigated.

Through focusing our efforts on client education as well as sales and the development of smart new products, we can help online commerce blossom while limiting unnecessary losses. The more insurance professionals understand about cyber risks, the more we can work towards bringing insurance itself more securely into an innovative, high-tech environment.
 

The Message at WEF: Ask the “What-Ifs"  As plenty of attention is turned to the World Economic Forum in Davos, many in the insurance field are doubtless wondering how the world's changing economic system will influence their business now and in coming years.
The recent past has served up impressive hurdles for the world's insurers. From major natural disasters to widespread interruptions in supply chains and other serious issues, assessing and addressing risk management has become increasingly complex. In response, the theme at Davos seems to suggest that both businesses and insurers alike can benefit most by asking “what if.”

Creating contingency plans is an essential part of ensuring that risk isn't able to seriously disrupt lives and businesses. Yet the importance of good planning is often lost on potential clients, and even on some insurance professionals, for whom short term gains may seem like a more attractive area of interest.

Both world events and the message at Davos have shown us that such mistakes are too dangerous to make, and that increasingly, we must ask “what if” if we are to provide quality products and services and to grow our companies. Though the road ahead can seem daunting with its many possible forks and off-shoots, we look forward to a new perspective.