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By Max Dorfman, Research Author, Triple-I
Economic turmoil, political unrest, climate catastrophe, and the aftermath of a global pandemic are just some of the forces that require everyone – homeowners, consumers, businesses and policymakers, as well as risk management professionals – to take responsibility for understanding and reducing “the hazards facing we are all exposed to,” said Sean Kevelighan, CEO of Triple-I, on a recent episode of the Predict & Prevent podcast.
“We’re just living more and more at risk,” Kevelighan told Peter Miller, president and CEO of The Institutes and host of the podcast, which explores how innovators are tackling some of society’s biggest risk challenges by working to avoid losses before they occur. “In terms of our behavior, we are a riskier society and that puts pressure on the traditional tool of risk transfer, insurance.”
“Even before we dealt with COVID, the severity of natural and man-made disasters had increased,” Kevelighan said. The two CEOs discussed this increasing severity and what it means for insurers and the policyholders they protect.
“There is little doubt that there is an urgent need for prediction and prevention,” Miller said. “But the big question remains, how? How can we put these principles and practices into action?”
Among other things, Kevelighan spoke about the role of telematics and the Internet of Things in helping policyholders anticipate losses and mitigate them in advance through investments or behavioral changes. In the case of vehicle telematics, for example, it shouldn’t just be about getting reduced insurance premiums.
“It should be about helping people become safer drivers,” Kevelighan said.
Predicting and avoiding costly losses requires shared responsibility from everyone involved. It is no longer enough to simply take out an insurance policy and rely on you being paid out if something bad happens. A mindset change is required.
As Kevelighan put it, “No one wins from defeat.”
The Predict & Prevent Podcast can be found on Apple Podcasts, Spotify, Google Podcasts and Stitcher. Other current episodes are:
How FEMA Delivers Resilience; Computer vision increases security
Predict forest fires and work accidents with better risk data
Prevention of catastrophic water damage
Perspectives of political decision-makers
Hidden dangers revealed