We have an insurance market that largely relies on examining and verifying whether the reported insurance values actually correspond to reality only after a major loss has occurred. In our view, this is the worst possible situation for such an exercise.
Under general conditions for property and business interruption insurance, it is the policyholder's responsibility to report correct reinstatement and replacement values as the basis for their insurer. Should the reported values turn out to be too low compared with actual values at the time of a loss, underinsurance applies, which can have serious negative consequences for the compensation to be paid.
We believe the best agreements are those that actually match the parties' expectations of their joint agreement. We believe in agreements that are as predictable as possible. This applies not least to insurance contracts. For decades, reported insurance values have been both a concern and a worry for insurers as well as for policyholders.
Why is the question of whether the reported insurance values are actually correct only asked after a loss has occurred?
We believe the answer is that there has not, until now, been a service on the Nordic market to establish this before an insurance contract is entered into, in a fast, smooth and cost-efficient way.
Now there is.
We are convinced that this will dramatically reduce the number of disputes about correct insurance values and underinsurance, while freeing up time and resources for both parties to focus on the single most important work when it comes to a company's operational risk – loss prevention. Only fewer and smaller losses can deliver lower premiums and sustainable insurance programmes over time. Correctly reported insurance values must become a matter of course and a prerequisite for every insurance contract.
