Managing large and complex risks requires a ‘triple partnership’

Gia Snape Insurance business We sat down with Louis Vatrt, Vice President of Engineered Properties at CNA Canada, to delve into the large and complex risks in commercial real estate and the three-party partnerships required to deliver the right insurance solution. .

Operating commercial real estate is fraught with complex risks and uncertainties. Unexpected inventory loss, property damage, business interruption and repair or replacement costs are just a few of the risks these commercial companies face.

Large and complex asset risks, including a variety of assets such as financial institutions, industrial infrastructure, road and transportation infrastructure, telecommunications, manufacturing, retail and distribution, require more specialized risk solutions.

For Louis Vatrt (pictured), Vice President of Engineered Properties at CNA Canada, managing large and complex risks requires strong collaboration between insureds, brokers and insurers. Each party plays an important role in what Vatrt describes as a “three-way partnership.”

“Natural disasters are one of the major risks, whether it’s an earthquake or a hurricane. These events have a significant impact on the assets we insure,” said Vatrt.

Storms like Hurricane Fiona have wreaked havoc on Canada, but secondary hazards like hail and windstorms shouldn’t be ignored. “We have underwriting models for earthquakes and floods. But given their devastating nature and potential, it is difficult to model wildfires and tornadoes that can occur without warning.” he explained Vatrt.

“These events have become more severe and more frequent in previously non-endangered areas. While eastern Canada is rarely affected by hail, western Canada, particularly Alberta, is experiencing these conditions. An influx of has been observed.The prairie is subject to severe convective storms, including highly destructive winds.Much of the current infrastructure was not built to withstand high winds. ”

The combination of inflation and rising interest rates this year is also putting pressure on the market. Mr Vatrt said: Rising inflation drives exposure and increases the need for market capacity to support changes in insured values. ”

tripartite partnership

Risk managers are ultimately responsible for transferring the organization’s risks to the insurance market. As a steward of risk, you need to ensure that your organization has strong loss control measures in place. “We aim to partner with companies that are willing to protect their clients’ assets as much as possible,” he said.

At the same time, brokers are key to fostering relationships with insurers that can best serve the insured. As his matchmaker, the broker should use his knowledge and experience to ensure a proper fit between the insured and the insurer while advocating on behalf of the client.

As Vatrt explains:

Finally, the right insurer will tie everything together, tailor coverage specific to a client’s exposures, and help risk managers mitigate potential losses. In the event of damage, the right insurer can deploy skilled claims professionals to help get your business back on its feet as quickly as possible.

CNA’s specialized underwriting, claims and risk management expertise is aimed at helping organizations manage risk and drive profitability. “When a claim comes up, we make sure we have protocols in place to make the process as seamless as possible for our clients. Companies want to get up and running and we want them to. We want to pave a clear path for ,” said Vatrt.

Mitigation is a key component of CNA’s service. Policyholders have access to property protection services such as sprinkler plan reviews, hazard awareness, machine failure experts, emergency preparedness and business continuity planning. For Vatrt, adding value to the client experience helps strengthen partnerships and program success.

“During my career, I have made many recommendations and even helped clients procure equipment. We do more than that: these are the ways CNA adds value that risk managers can trust,” he added.

By going further, CNA enhances its commitment to clients and ultimately the combined impact of collaboration between insureds, brokers and insurers.