As a prominent provider of risk control surveys in the UK insurance market, Cardinus has observed the surprisingly low utilisation of pre-inception risk surveys within the industry.

Despite completing a substantial 2976 surveys completed by Cardinus in 2023, only 3% were conducted pre-inception. This raises questions about the industry’s awareness of the invaluable benefits that these proactive surveys bring to the table.

Keep reading as we explain the importance of pre-inception risk surveys, best broker practices and the benefits to your business.

The impact of high-quality pre-inception surveys

While a minority of brokers employ surveyors, the impact of a high-quality, independent pre-inception risk survey cannot be overstated. Particularly for complex and high-risk exposures, these surveys play a pivotal role in facilitating the placement of a risk.

By providing a detailed understanding of potential issues, offering guidance on Estimated Maximum Loss (EML) and suggesting risk mitigation measures before the underwriter assesses the presentation, a pre-inception survey can be the determining factor between securing coverage at reasonable terms and facing an automatic rejection.

Best broking practices

Enhanced risk information has always been a key differentiator, reflecting the best broking practices. The comprehensive assessment of risk, coupled with a well-thought-out risk management plan, equips underwriters with the necessary insights to make positive decisions. Underwriters increasingly value positive risk management strategies, making a pre-inception survey a strategic tool in securing favorable terms.

The benefits of pre-inception surveys extend beyond underwriting considerations. A thorough survey aids in ensuring compliance with health, security, and safety legislation, thereby enhancing the broker-client relationship. This added value reinforces the broker’s commitment to their client’s overall well-being and regulatory adherence.

The Cardinus approach to risk surveys

Cardinus takes a bespoke approach to each insurance risk survey, recognising the unique nature of every assignment. Our surveying methods encompass a range of approaches, including:

  • Physical surveys: Conducted on sites or premises.
  • Policy and procedure reviews: Examining internal policies and procedures.
  • Scenario-based analyses: Evaluating Estimated Maximum Loss (EML) and Probable Maximum Loss (PML).
  • RICS Certified Reinstatement Cost Assessments: On building sums insured.
  • Business interruption exposure assessments: Evaluating potential business interruptions.
  • Risk culture evaluation: Assessing the attitude toward risk management within the business.

Viewing surveys as investments

Rather than viewing pre-inception surveys as a cost, it is crucial to see them as an investment to your business and your client’s. This strategic approach can significantly differentiate your lead generation efforts, particularly in the context of larger, higher-risk opportunities.

Elevate your risk assessment game

To discuss how Cardinus can enhance your risk management strategies and contribute to your insurance placement success, please get in touch. Elevate your risk assessment game and ensure a more secure future for your clients.

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