Monday, December 11, 2023

Insurance as asset protection in an inflation scenario

Insurance is the most successful asset refuge in the context of inflation. But how to maintain a profitable business and with convenient premiums for the insured? The broker’s challenge: efficient and quick insurance for the insurance advisory producer and his clients. The keys to survival: diversification and digitalization.

Insurance is the best “ally” to preserve the value of assets. In inflationary contexts, property insurance is very important; They mean protection in case of an accident, peace of mind for the person (the family), because – if necessary – the property is repaired or restored, regardless of the price increase. Despite inflation, excellent service means the insurance advisory producer can retain their clients and then grow with them in good times.

A need favors the development of a skill. Even in storms you have to surf big waves. Financial volatility in recent times has meant that claims have become more expensive. In such a turbulent and uncertain market, there is an excellent balance to preserve the value of the asset with the amount insured and, in addition, offer affordable premiums.

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race “players” in the sector must be creative to adapt the coverage to the needs – and possibilities – of the insured, without falling into losses in the face of not being able to provide a good service in the event of accidents. New thoughts are needed to adapt the coverage and even think of new alternatives; For example, as happened with the growth of guarantees for the rental of family properties, which was later extended to commercial properties.

Inflation reduces profits, so one of the alternatives we recommend as a broker to maintain a “healthy” business is diversify risks, and thus reduce the possibility of accidents. Brokers and producers should think about a mix of insurance that combines items with a lower historical loss rate with others that have a higher probability of occurrence.

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On the other hand, the digitalization of insurance operations This is a strategic decision to reduce costs, time and resources in the context of inflation. As a broker, we have long been convinced that digital transformation is the path to the qualitative leap that the sector needs; We know that it contributes to making the management of all industry players more efficient, favors collaboration, and simplifies operations in general. We have experienced that the digitalization of processes, which facilitates PAS to use simple, friendly, fast self-management platforms, not only improves their experience but, primarily, their policyholders. Likewise, the reduction in the cost of the broker is transferred (favorably) to the insurance advisory producer and from it to its clients.

And the added value of digitalization is having omnichannel platforms, which save time, facilitate management and facilitate access to data; Wherever the insured’s information is entered, it is updated online and in real time. It favors the support and service of the insurance advisory producer, as well as improves the experience of their relationship with the insured, strengthens relationships and creates a network of trust that is important for the business. The insured sees his adviser as an expert who recommends what is most suitable according to his needs and possibilities.

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The Argentine market has cycles. We are experiencing a complex cycle that requires all the creativity of different players, strategic alliances that allow us to offer good products at affordable prices, which at the same time cover any contingency of assets to the insured in a framework that seeks not to be taken. fell to losses in a chaotic context. And the insured should feel that their coverage protects them at all times, especially in the face of inflation.

Nation World News Desk
Nation World News Desk
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