Under insurance is a perennial problem and it is difficult to understand why the issue seems to have such a low profile at executive board level when it poses such a threat to business survival and ongoing success following a major loss.
Insurers across the board have publicised the problem and it is worth noting right at the beginning of this whitepaper that they do not do this to increase their premium income, but rather to make sure their clients have the correct amount of protection in place.
Businesses that have the appropriate level of insurance recover faster than those who do not and they are more resilient at surviving both the initial impact of a major loss and the subsequent challenges it creates.
As such insurers want to form long-term, mutually beneficial and evolving relationships with these businesses and to work to protect them in the present and help them to grow in the future. Of course this approach is self-serving for insurers, but it also helps to keep corporate clients in a well maintained and strong commercial condition.
But just why does underinsurance pose such a threat to businesses, where is it most prevalent and what can firms do to overcome the problem?
Download this infographic to find out.