The need for the industry to embrace environmental insurance


The need for the industry to embrace environmental insurance


What do you think are the most challenging issues facing the environmental insurance and the overall insurance industry today?

The biggest problem with environmental insurance over the past 30 years is that the insurance distribution channel is not up to the task of engraining the product line in to the mainstream insurance programs. Without educated brokers explaining the gaps in insurance coverage created by pollution/mold/bacteria/category 3 water exclusions in property and liability insurance policies, the demand for insurance products is severely restrained. Today, less than 1% of commercial buildings are adequately insured for water intrusion events as a result.

Meanwhile, the overall insurance business is facing a problem with a very large percentage of the workforce retiring in the next seven years – a lot of knowledge will walk out to the door in that time period. We find it takes us five years before a new employee is fully functional in their job as an environmental insurance broker. Recruiting of young folks 10 years ago was not sufficient; I suspect we are all in for a competency crunch in the insurance business in five years as a result. We recruit young folks in ARMR to avoid the crunch, with 45% of our employees under 30 years old...   ...more

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- - Volume: 6 - WEEK: 6 Date: 2/7/2018 12:12:03 PM -