Guiding clients in understanding their insurance coverage expectations

Insurance coverage can be a complex and often misunderstood aspect of financial planning. Frank Barbella, a risk management advisor at Marsh McLennan Agency (MMA), sheds light on the biggest misconception surrounding insurance policies – the lack of understanding about what is and isn’t covered.

Barbella’s firm, SOLV, specializes in conducting thorough risk diligence for clients, uncovering significant policy flaws that may have been overlooked. According to Barbella, many clients only realize the inadequacy of their coverage when they file a claim, which is the wrong time to discover such shortcomings.

By providing expert risk diligence, Barbella and his team help clients avoid surprises during times of crisis. They emphasize the importance of having adequate coverage at the time of a claim, rather than focusing solely on price and relationships.

Barbella shared a striking example where a financial institution raised a substantial amount of capital, only to find out through SOLV’s risk diligence that their cyber policy was severely deficient. This revelation highlights the critical role that thorough policy review plays in ensuring adequate coverage.

As the insurance sector evolves with the integration of AI technology, Barbella remains firm in his belief that human expertise will always be essential in the industry. He emphasizes the need for a human element in understanding and addressing the diverse exposures that clients face.

In a marketplace marked by rising premiums and carrier uncertainty, Barbella stresses the importance of competitive options for clients to manage their risk effectively. Despite the challenges posed by consolidation among carriers, Barbella remains optimistic about the potential for insurtech firms to help carriers better understand and manage their exposures.

Overall, Barbella’s insights underscore the importance of informed decision-making when it comes to insurance coverage, ensuring that clients are well-prepared for any eventuality.