Benchmarking for Private Risk: Surprise, It Isn’t Just for Businesses
As a successful individual, you likely know the value of strategic planning in managing your wealth. One area that may not immediately come to mind when it comes to strategic planning is insurance. However, proper insurance coverage is essential to managing your private risk and protecting your assets. In turn, this can help maintain your financial security when unexpected events such as theft, natural disasters, or legal claims happen. This is where benchmarking comes in.
In this post, we’re going to discuss what benchmarking is and how it can help inform private risk coverage decisions.
What is Benchmarking?
Benchmarking is a powerful tool that uses data analytics to help you compare your current insurance coverage to similar coverage available on the market. This can help you determine if you’re insuring against risk appropriately compared to your peers and getting the best value for your insurance expenses.
Benchmarking allows you to analyze claims activity data to measure the probability of loss and calculate the necessary insurance costs. This means that you can get a much more precise sense of what coverage you need based on your unique risk profile. Instead of simply guessing at how much coverage you should have, benchmarking provides data-driven insights that help you make informed decisions.
By comparing your current coverage to similar coverage available on the market, you can ensure that you’re getting the most comprehensive coverage possible at the best possible price. Benchmarking can also help you identify any gaps in your current coverage and determine how best to address them.
Benchmarking for Private Risk in Action
A boating loss occurred with injuries in the state of Florida to a pentamillionaire. The boater’s engine was idling, and two to three swimmers were nearby floating in the water. As the engine struck the people in the water, serious injuries occurred. The total payout to the swimmers, who all lived, was $75 million against the owner of the boat.
Performing a benchmarking assessment with an insurance broker will detail claims examples, like this one, and how similar affluent demographics experience loss.
An On-Going Process
It’s important to note that benchmarking is not a one-time process. After all, your risk profile and insurance needs may change over time. That’s why it’s important to regularly review your coverage and make adjustments as necessary. This means that benchmarking should be a regular part of your overall risk management strategy.
If you’re a successful individual, it’s essential to have the right insurance coverage to protect your assets and maintain your financial security. Benchmarking can be a powerful tool to help you make informed decisions about your insurance coverage and ensure that you have the appropriate coverage based on your unique needs.
There’s a lot more we can say about the benefits of benchmarking for private risk. In fact, we’ve compiled these thoughts into a PDF resource, Benchmarking: The Over/Under of Coverage & Limits. Please feel free to download this resource here:
Private Risk Benchmarking Solutions
Our Private Risk team uses data to make informed decisions about your insurance coverage, which can provide you with peace of mind by helping to make sure you’re getting comprehensive coverage at the best possible price. Feel free to contact us for more information about risk benchmarking.