Loss Control Repositioned

Loss control has an image problem in commercial insurance. It is often perceived by insureds as a compliance visit -- something to get through rather than something to look forward to. The carriers that have fixed that perception have built genuine competitive advantages.

The repositioning requires a different kind of loss control professional and a different kind of conversation. Instead of arriving with a checklist, the best loss control services arrive with industry loss benchmarks, specific recommendations tailored to the insured's operations, and follow-up that tracks whether recommendations were implemented and whether losses improved as a result.

When loss control works as a risk partnership rather than an inspection function, insureds value the renewal relationship differently. They are less price-sensitive because the carrier is delivering something their competitors do not. And the loss data generated by effective loss control feeds better underwriting and pricing models.

Loss control that actually prevents losses is an investment that improves the combined ratio directly. The carriers that have made it a strategic priority instead of a compliance function tend to have the data to prove it.