Crises, whether natural disasters, economic downturns, or global pandemics, can disrupt business operations in unexpected ways. When these events occur, insurance brokers play a vital role in helping companies navigate uncertainties, adjust coverage, and ensure they remain protected.
Adjusting Coverage in Uncertain Times
During a crisis, businesses often need to reassess their insurance policies to address new risks. Natural disasters like floods or fires may require increased property coverage, while economic instability might shift the focus to business interruption insurance. Insurance brokers help businesses adapt by guiding them through policy adjustments, ensuring they have the right coverage at the right time.
The COVID-19 pandemic, which forced global shutdowns in 2020, is a prime example of how quickly a crisis can reshape insurance needs. As businesses closed and millions of employees worked remotely, insurance brokers were essential in reviewing policies like business interruption and liability. They also advised companies on how to navigate coverage gaps. According to a survey by NYDA, two-thirds of African businesses faced significant disruptions during this time. Brokers helped mitigate losses by assisting with claims and adjusting policies to cover unforeseen risks.
Essential Support and Guidance
In addition to adjusting policies, insurance brokers provide crucial support during crises. Acting as intermediaries between businesses and insurers, they work to speed up claims processing and offer expert guidance on managing risks. Whether it’s an office fire, a cyber-attack, or a supply chain disruption, businesses rely on brokers for their expertise and advocacy. Notably, a report by SEACOM revealed a 76% increase in cyber-attacks on South African businesses in 2023, underscoring the need for such support.
Brokers also play a key role in simplifying complex insurance language, giving companies the confidence to make informed decisions. Their insights help businesses address immediate concerns, such as revenue loss or reputation damage, while minimizing the long-term impact of a crisis.
Preparing for the Future
Brokers don’t just offer reactive solutions; they help businesses develop long-term strategies for crisis management. By assessing risk profiles and identifying potential vulnerabilities, brokers ensure that companies are better prepared for future challenges. This proactive approach strengthens businesses’ ability to recover and thrive after a crisis.
In times of crisis, having an insurance broker provides businesses with critical support, from adjusting coverage to guiding them through claims processes. Their expertise ensures companies can navigate uncertain times with confidence, safeguarding their future. RBS is here to offer expert guidance, helping you prepare for the unexpected and secure your business for the long term.
About RBS 2024
Risk Benefit Solutions, better known as RBS, originated as an entrepreneurial-focused services business in 1998 and today is one of the largest fully-fledged black-owned insurance brokers in South Africa and a Level One BBBEE contributor. Celebrating 25 years in business this year, our growth has contributed to offering clients a unique approach to risk management by positioning our skilled resources as an extension of our client’s risk management team. Our company covers various services, including Insurance Broking, Risk Management, Commercial and Corporate Risk Advisors, and Corporate Vehicle Hire Services. With its head office in Cape Town, RBS has offices in Gauteng, the Eastern Cape and globally, represented through its board membership with WING (Worldwide Insurance Network Group).