AUSTRALIA
AU
Search
Close this search box.

Global spotlight: What we’ve learnt from La Niñas and El Niños

From droughts to severe flooding, and the ongoing economic and societal impacts from these events, carriers need to have an understanding of just how to forecast their response to a declared ENSO event.

Scott Newland, General Manager – Government and Long-Tail Claims, has worked through many of these severe weather events and shared his top tips for carriers.

 

  • Q) What do we typically see during a La Niña or El Niño event?

Scott Newland (SN) Typically for an El Niño we see an increased risk for widespread, damaging bushfires. In hot, arid climates across Australia and North America, these bushfires can quickly see damages rise into the millions as established communities are threatened. On the other hand, during a La Niña, carriers should expect to see an increase in rain events, leading to flooding, tropical cyclones or severe storms causing damage to homes and businesses.

 

  • Q) Do you believe one is worse than the other?

SN) No, both can have devastating impacts to both individuals and communities.

 

  • Q) What can carriers do to prepare for a declared event?

SN) It is critical carriers have a documented event or surge plan for the various event types they will face (e.g. flood, bushfires, cyclone), and regularly test this plan. It’s not good enough to simply have the plan stored away, it needs to be regularly reviewed and tested to make sure it is really up to scratch.

This plan should include how the business will mitigate risks for its customers, clients and its own operations. This could include scaling up the headcount or outsourcing during an event to ensure you continue meeting customer expectations.

 

  • Q) What are the possible outcomes for a carrier who is unprepared for a declared event?

SN) The old adage is true, failure to plan means planning for failure. If you are not prepared for an event you could see not only a loss of customers due to reputational damage from missed expectations but also employee burnout and increased turnover and cost leakage as a result of poor training practices, processes or financial controls.

 

  • Q) What advice would you give to a carrier who wants to be better prepared for La Niñas and El Niños?

SN) Make sure you have retained a dedicated catastrophe or crisis management team, who has proven capability across technical expertise, scalability and the rapid deployment of operational teams. These factors are critical to whether your business sinks or swims during, and after, a surge event. Pre-event training needs to be supported by a highly-experienced team of catastrophe claim experts, with the ability to outsource and scale your business at short notice. This focus should mitigate additional pressure on your business by providing the following:

    • Pre trained Event resources
    • Deployment of designated Event call centre response
    • Establishment of dedicated Claims response teams
    • Management of portfolio specific tranches

If you are looking for more experienced advice on how to optimise your business during La Niñas or El Niños, reach out to Gallagher Bassett today.

Scott Newland

General Manager – Government and Long-Tail Claims

More Posts

Insights

What’s Next for ESG: Six Ways Insurers Can Prepare for 2024 

As we approach 2024, one key topic that has gained significant regulatory interest in the insurance sector is ESG. With emerging regulatory and reporting requirements emerging, Arch Archarya – Chief General Counsel, unpacks the key strategies insurers can leverage to stay ahead in 2024.

Read more
Insights

Brilliant Basics: Seven Golden Rules of Exceptional Customer Service

As technology and innovation continue to shape customer interactions, it’s easy to get swept away by the latest trends and tools. However, amidst all the advancements, there is an enduring truth: when it comes to customer service there’s no one silver bullet – rather it’s about getting the basics right.

Read more

Keep your finger on the pulse of the latest industry news and insights.

Sign up to our monthly newsletter today.

Download Our Global Insurance Industry Whitepaper

Hi there!

Want to drop us a line?  You can get in touch by filling out the form below and we’ll get back to you as soon as possible!