No business exists in a vacuum. They say that businesses are made of people. People do not buy products and services, but they buy people. People create trust and trust creates an invisible currency upon which every business is founded.
Since businesses do not exist in a vacuum, they are prone to risks. When businesses run into risks, sometimes huge losses are incurred. Some manage to pull through while some fall forever, dead, never to see the light of a business day again.
When Covid-19 hit the country, so many businesses went down. Millions of them have never opened the shop after the pandemic. You never know that your business is it risk until you run into one. In such cases, in anticipation of risks, you need Insurance Underwriters.
Insurance underwriters are professionals who evaluate and analyze the risks involved in insuring people and assets. They establish pricing for accepted insurable risks. Often, they use specialized software and actuarial data to determine the likelihood and magnitude of risk.
Underwriters assume the risk in a contract with an individual or entity. For instance, an underwriter may assume the risk of the cost of a fire in a home/business in return for a premium or a monthly payment.
Why does your small business need an underwriter?
First, no business, big or small, exists in a vacuum. The beauty of any business is competition. It is a competition that helps one’s business grow and expand, of course with the correct clientele focus. Underwriting helps you know the soundness of your business compared to others within your field.
Secondly, it helps you value your business and know how much it is worth. This helps you realize that you are not running a business venture that is founded on hot air but valued by experts who have an experience within the sector.
Thirdly, every business has risks. Nobody knows what will happen the next minute. Your business might be hit by fire, a terrorist attack, theft or even swept away by floods. The underwriter helps you know, in the event this happens, you have a stand on what you will ask for from your insurer.
Do we have an established underwriter in Kenya?
Yes, Xplico Insurance Company Ltd. Xplico’s exponential growth in retail underwriting over the years has seen the company set up a vibrant Corporate Division to cater to both SMEs and well-established companies within and without Kenya.
The company is among a few in Kenya that goes beyond simply providing insurance solutions that suit peoples’ business needs. They provide decisive financial solutions, cutting a niche in corporate insurance.