Key Takeaways

  • Risk reports clarify and highlight positive attributes of clients’ properties and risk management programs, especially following a loss.
  • Sharing risk assessment reports with insurance carriers can help secure better terms.
  • Risk Services consultants identify opportunities for improvements in risk controls to build a longstanding client-broker relationship

Turning Challenges into Opportunities

A large high-rise strata complex faced substantial challenges due to a history of water-damage incidents, including one major loss that resulted in a significant insurance premium increase. Following extensive renovations and the implementation of new processes, the strata corporation struggled to explain how it increased the building’s resilience or how it could further improve its risk management practices in ways recognized by insurers. Despite the corporation’s efforts to mitigate future losses, underwriters continued to view the property as a high risk.

Partnering for Better Outcomes

Recognizing the need for a solution, the prospective client’s broker engaged HUB’s Risk Services team to conduct a property risk assessment. HUB collaborated closely with strata council members to gather information and identify key vulnerabilities. HUB’s assessment included a detailed gap analysis of existing water-damage prevention and maintenance procedures and checklists, yielding recommendations for improvement.

Achieving Results and Building a Lasting Relationship

HUB Risk Services compiled a comprehensive risk report that showcased the property’s updated risk management practices following the loss, as well as the hiring of a full-time manager. The report also included the strata’s trajectory if recommendations were implemented. By leveraging this report during negotiations with insurers, HUB successfully secured a reduction of more than 40% on the strata’s insurance renewal premium. This established a long-term partnership, with the client actively seeking HUB’s guidance on additional risk management strategies.

An effective risk assessment can reduce premiums, improve risk profiles and build trust with clients. Let HUB help you unlock these benefits for your real estate assets and turn your proactive measures into tangible reductions. Reach out to your local HUB team to learn how its risk assessment expertise can transform your insurance outcomes.

Best Practice Tip: HUB recommends engaging with its Risk Services team well in advance to policy renewal to ensure maximum impact. For example, if HUB’s Risk Services division is approached 120 days out, a typical insurance placement takes 90 days from start to finish, giving the Risk Services team a 30-day window.