In the landscape of escalating commercial property premiums and increasing insurance costs, businesses are seeking innovative ways to protect their assets while also managing expenses effectively. Implementing live remote video monitoring by American Virtual Monitoring (AVM) in 2024 emerges as a strategic move, offering not only enhanced security but also potential savings on security management and insurance premiums.
Tackling Rising Premiums Through Proactive Security Measures
The Q3 2023 report from The Council of Insurance Agents & Brokers highlights a relentless climb in commercial property premiums, marking the 24th consecutive quarter of increases, with an average rise of 8.1%. Specifically, commercial property premiums soared by an average of 17.1%, the highest increase across all lines for the fourth consecutive quarter. This uptrend, fueled by factors like reinsurance pricing issues and climate change-induced claim frequency, places a significant financial burden on businesses.
Live remote video monitoring by AVM can address these challenges head-on. By implementing a system that offers real-time surveillance and immediate response to potential threats, businesses can significantly mitigate the risk of incidents that lead to insurance claims. This proactive approach to security not only enhances protection but also positions businesses favorably when negotiating insurance premiums, potentially leading to lower costs due to reduced claim frequency and severity.
Leveraging Technology to Alleviate Rate Fatigue
The report further reveals a pervasive sense of rate fatigue among clients, with over 70% expressing dissatisfaction with the current market conditions. This discontent is compounded by a mistrust towards the industry, partly due to relentless requests for information from carriers.
In this context, AVM’s live remote video monitoring offers a cost-efficient and transparent solution. The technology’s ability to provide comprehensive surveillance without the need for constant human intervention addresses the concerns of rate fatigue. Clients gain access to a high-level security service that operates 24/7, ensuring continuous monitoring and immediate action when needed. This not only enhances the security posture but also presents an opportunity for businesses to showcase their commitment to proactive risk management, potentially easing the negotiation of insurance terms and premiums.
D&O Premiums: A Glimpse of Potential Savings
Interestingly, the report notes a slight decrease in D&O premiums, marking a shift from the consistent increases seen in previous years. This trend indicates a window of opportunity for businesses to leverage advanced security measures like live remote video monitoring to further negotiate and potentially lower their insurance costs. By demonstrating a commitment to comprehensive security and risk management, businesses can position themselves as low-risk clients, potentially influencing their D&O premiums favorably.
As businesses navigate through the challenges of rising insurance premiums and evolving security threats, the implementation of live remote video monitoring by American Virtual Monitoring stands out as a strategic solution. Offering a blend of advanced technology, proactive risk management, and potential cost savings, AVM’s services are well-positioned to meet the security needs of businesses in 2024 while also alleviating the financial burden of escalating insurance costs.
