Here’s Why Your Agency Should Partner with an Insurance & Risk Management Consulting Company


Here’s Why Your Agency Should Partner with an Insurance & Risk Management Consulting Company

Small to mid-size agencies regularly outsource business functions. From insurance management software to accounting and payroll management, smaller firms simply do not have the budget to accommodate specialized IT or other staff. Since agencies already partner with a range of third-party services, partnering with an insurance and risk management consultancy is a logical next step. Here’s why this kind of partnership will assist your agency in bringing down costs, increasing efficiency and opening up new markets.


They Are Cost Effective


Certified public accountants and outsourced legal agencies may offer advice to smaller organizations when it comes to insurance and risk. Though knowledgeable, these professionals lack the industry insight that insurance and risk management consultants can provide. Consultants offer agencies valuable policy analysis and are able to spot policy limitations that could negatively impact coverage and claims.


In addition, risk managers are better equipped to notice exposure than CPAs or legal entities. Independent consultants are familiar with numerous insurance carriers and programs. These industry experts have their eyes on trends and best risk management practices for your particular organization based on loss history and other factors. In short, risk management consultants can reduce up-front costs and also limit expenditures down the line.


They Are Efficient


As mentioned above, risk management professionals have a fine understanding of the insurance industry. They efficiently navigate programs and policies to save your organization time. Experience isn’t the only factor that increases efficiency. Insurance management software backed by experienced consulting firms offers small organizations the kind of bespoke services that are typically available only to large companies with in-house risk managers.


Out-sourced consultants appreciate the rapidly changing insurance landscape and understand that traditional insurance solutions might not be the best solutions for smaller businesses. The need for a “rainy day fund” and a plan for unseen risk in a new digital age are two areas where consultants stand out.


Agencies interested in pursuing non-traditional coverage options like captive risk insurance often seek experienced consultants in this area.


They Are Growth-Minded


Not all organizations need a risk management consultant, but if your agency plans on growth, finding a consultant who understands your industry and goals will improve your decision-making. A consultant will typically conduct an audit and provide you with feedback that matches your business’ scope and objectives. Before taking on a consultant it is helpful to have a clear understanding of your business’ goals.


Other Considerations


When choosing a consultant, agencies should ensure that the consulting firm does not offer insurance policies or receive any financial incentives from insurance carriers or brokers. If it does, then conflicts of interest are present. Trustworthy consultancies act independently of insurance providers and offer objective guidance and counsel.