Communicating climate risk to broking clients

The broader insurance industry has never been under greater scrutiny when it comes to communicating accurate and timely information about climate-related risk to clients.

Just in the last year alone, Australia has been battered by a number of catastrophic natural disasters, prompting the insurance sector to put their own communication skills under the spotlight behind closed doors.

General Manager of Broker Distribution at Allianz, Glen Drinnan said, “Only when your clients understand how our climate is changing can they turn their attention to how it will impact them.”

Professor Benjamin Newell has conducted research titled The Psychology of Climate Change and Communication and believes that the broader industry has an opportunity to step up and develop strong communication skills around climate change.

Six definitions that’ll get you and your client on the same page:
• Hazard
Something that makes your situation more risky, such as storing explosives in your house.
• Risk
Meanings include the likelihood of something happening that could cause injury or financial loss, exposure to a specific threat, hazard or peril or uncertainty to the outcome of an event.
• Vulnerability
A vulnerable customer is someone who, due to their personal circumstances, is especially susceptible to risk.
• Exposure
The amount of loss a customer could experience.
• Sensitivity
Determines how various sources of uncertainty contribute to overall uncertainty.
• Adaptive capacity
Relates to the ability to adjust to potential damage, take advantage of opportunities or respond to consequences.

You can access the full NIBA Allianz Broker Guide here.