Three facts about cost-effective risk taking
Are you also finding that deciding on how much risk to cover and how much to retain is a recurring headache? Because, not only is the insurance risk spectrum vast, everyone seems to have his or her own take on what is the most cost-effective option.
Risk taking and emotions
It often seems as if these two are inseparable. Deciding on the best mix-and-match between risk taking and cost effectiveness often ends in a long drawn-out discussion with many different stakeholders. Most likely cause is that personal takes on risk management often get the upper hand. Emotions then get in the way of effective decision-making.
But, how to get around emotive arguments? We’ve lined up 3 facts that can help you take the ‘e’ out of emotion and move you to getting the most cost-effective insurance cover.
Fact 1 – Facts count
This is all about getting down to the nitty gritty before letting other – emotive – elements have their way. Cost scenarios based on the right level of claims data analysis tend to be far more reliable than those on which emotive elements have been let loose.
Fact 2 – Big is beautiful
The power of numbers has always had effect. So why not make your numbers work for you to the fullest? The more you are able to consolidate and analyse claims data at a global level, the greater the opportunity to structure risk company-wide and get the most cost-effective insurance cover.
Fact 3 – Small is smart
A company-wide risk and insurance policy need not infringe upon the flexibility to act on claims experience of smaller individual groups or local company entities. Ever thought of using this flexibility to dot the ‘i’s’ and sharpen your risk management strategy even further.
Knowledge is power
One of the keys to success here appears to be the measure in which you are able to access and analyse claims data. The more comprehensive your information:
- the more likely you will be to convince internal stakeholders
- the better your negotiating power will be
- the greater your ability to control costs