Why Do I Need A Risk Manager Versus A Regular Insurance Agent?

When shopping for an insurance agent, some things are much more important than the price of the premium. There are insurance salesmen, and there are risk managers. What makes one advantageous over the other?

It starts with the process. Insurance agents fill out applications. Risk managers conduct interviews. Insurance agents focus on products to sell. Risk managers focus on problems to solve. Insurance agents have a line of insurance to sell. Risk managers broker with others to access markets near and far. Their focus is to solve the customer problems first, and worry about commissions next.

After the interview process is complete, the next step for risk managers is the risk assessment. Risk managers will review the accounts of similar business types, or review the files on similar homes/autos, etc. They will share case studies, and loss notes, and attempt to teach ways to mitigate risk. Rather than focusing on a policy, they teach ways to prevent claims.

Next is risk treatment. Insurance agents use policies to treat risk. Risk managers review contracts, provide additional resources like attorneys and accountants, or even HR managers, and pull these together, in combination with insurance, to more effectively manage and treat risks.

When a claim happens, insurance agents have a duty to report the loss. Risk managers manage the claim, advocate on behalf of the client or the carrier, and then seek to prevent future loss.

Years later, a risk manager is still working, looking to remarket or find new programs, not just on lowest price, but on best coverage. A risk manager will also make annual recommendations on endorsements to improve or add additional coverages.

A risk manager’s work is never done, but in the end, you will find their concierge style service to be far more useful to your long-term life needs.