IRMI Update—Issue #170
An E-mail Newsletter for Risk and Insurance Professionals
ISSN: 1530-7948
October 3, 2007
In This Issue
Colleague,
How many agents or brokers should an organization use? One school of thought
is that only one should be employed. This facilitates efficient and complete
communication. Focusing all attention and communication on only one agency or
brokerage team allows the team to become more knowledgeable of the client's
operations, risks, and service needs. This approach also maximizes the revenue
associated with the account for the agency or brokerage, and should thereby
make the account a more important client that can demand additional service.
Another school of thought is that two or perhaps three agencies or brokerages
should be used. Advocates believe that doing so maintains a healthy element
of competition for the account and provides an excellent back up if the relationship
with one of the firms sours. Using multiple firms also allows the organization
to choose specialists to take care of special needs. For example, a company
with substantial foreign operations might use one broker for its domestic program
and another for its international program. Using multiple firms, however, will
require redundant communications (of underwriting data, for example) and is
more susceptible to communications breakdowns.
What do you think is the best approach—maintaining a relationship with one
agency/brokerage or using multiple firms? What is your rationale? If you advocate
using multiple agencies/brokerages, how do you ensure that no communications
breakdowns occur? [See reader responses].
I hope to see you at the 27th IRMI Construction Risk Conference in a few
weeks. If you are planning to attend but haven't yet registered, do so before
October 12 to avoid the next fee increase. Learn more about the Construction Risk Conference.
Have a great day.
Jack
Jack P. Gibson, CPCU, CRIS, ARM
President
IRMI
Use Good Communication Techniques to Raise Awareness
of Risk Management—A key tool that can be used to raise the awareness
of risk management is communication. Frequent, targeted communication with both
internal and external stakeholders at all levels can foster buy-in and facilitate
decision making by management. How you craft and deliver your message can have
a significant impact on the positive perception of the value of risk management
to the organization. Master the critical communication skills: listening, writing,
public speaking, negotiation, persuasion, and conflict resolution. Then hone
those skills to make the most of your communication opportunities.
Planning your communications carefully is crucial to their effectiveness.
First, consider your audience. Make your message strategically valuable to that
audience. Focus on the key business drivers that they will understand. Have
a clearly defined message, and answer the bottom-line question: What's in it
for me? Then make your message clear, coherent, and concise. Don't use your
jargon—use theirs. Use graphics to display strategic results.
Take advantage of new ways of communicating. Use instant communication technology
to your advantage, but don't overlook personal face-to-face opportunities. And,
don't neglect one of the most important aspects—listening. You'll be amazed
at what you learn by just taking the time to listen. Listening also promotes
buy-in because your stakeholders feel they are being heard and are making a
beneficial contribution.
Drawn from
Practical Risk
Management, Topic A-13, Reports to Management.
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In the October issue, "Policy Drafting and Interpretation Primer," William
Fleming provides a basic background for those called upon to draft or interpret
insurance policy language.
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There are now nearly 1,000 risk management and insurance articles on IRMI.com.
Below you'll find summaries of some recent additions with links to the articles.
The 27th IRMI Construction
Risk Conference begins in 26 days on October 29. You can still attend and
learn from more than 60 speakers who will share in-depth knowledge on wrap-ups,
construction defect risk management, contractual risk transfer issues, and many
other important topics. All the major players in the construction risk and insurance
arena will be there. Shouldn't you be there? Register for the Contruction Risk Conference today.
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