From proactive communication
to streamlined claims processing
By planning ahead and considering both client and operational needs,
you can ensure that your agency is ready to face any natural disaster and
continue providing the essential services that your clients depend on.
By Dustyne Bryant, MBA, CIC, CISR
When hurricane Beryl made landfall on July 8, 2024, a stark reality slapped me in the face when I saw one simple social media post. Part of the post read: “Do you pay your staff during natural disasters? Our office is just a few miles from the coast and doesn’t have power, so we are not able to work.”
The reality hit me that my industry, the insurance industry, has business owners that have never heard the words “business continuity.” Let’s not judge too harshly here; rather let’s educate, share knowledge, and provide support to budding agency owners and business leaders. There are a few mind-blowing issues with this post, but I want to tackle continued operations during and after a disaster.
Natural disasters pose significant challenges to businesses across industries, and insurance agencies are no exception. For agency owners, ensuring business continuity during events like hurricanes, tornadoes, and floods is crucial—not just for maintaining operations but, more important, for continuing to serve clients who may be in desperate need of support. While ensuring power continuity and maintaining employee compensation are vital when developing a comprehensive disaster recovery plan, one primary focus must be on strategies that safeguard client relationships and uphold your agency’s reputation during these critical times.
The importance of client-focused strategies
When disaster strikes, clients are likely to be dealing with significant losses or disruptions. They will turn to their insurance provider for reassurance, guidance, and quick resolution of claims—after all, what else are they paying insurance premiums for? How the agency they trust as their advisor responds during these times can make or break client trust and loyalty. Implementing client-focused strategies is not just about maintaining business operations; it’s about being there for your clients when they need you the most.
Communication is key
Effective communication with clients is critical before, during, and after a natural disaster. Your clients need to know that you are prepared, that you have a plan in place, and that you will be available to assist them when disaster strikes.
In the days leading up to a potential disaster, it’s essential to keep clients informed about the risks they face. Consider sending regular updates through newsletters, webinars, or social media to help them understand the importance of being prepared. This proactive approach not only educates your clients but also provides peace of mind, knowing that their trusted advisor is ready to support them. Communicate your agency’s emergency contact information, including multiple ways to reach your team—whether through a dedicated hotline, email, or online portals.
When a disaster hits, maintaining regular communication becomes even more critical. Keeping clients informed about the status of your agency’s operations and any changes in service availability will ensure that your clients know where to find support. Utilize a variety of channels such as social media, email, and automated messaging systems to keep clients updated. In a crunch, these same communications channels can be used for office teams to reports their status, availability, or location of any mobile operations established.
Another key aspect of communication is encouraging clients to review their insurance policies on a regular basis. Provide education or guidance to review coverage for various disaster scenarios. The time to explore coverage is not during a crisis!
A claims process that counts
Beyond communication, having a streamlined claims process is one of the most significant ways your agency can support clients during a disaster. A disaster response and claims process should differ from the processes of normal operations. It’s time to triage!
When clients are dealing with damage to their homes, vehicles, or businesses, they need a smooth and efficient claims process. Consider forming a disaster response team within your agency that focuses exclusively on managing claims during and after a disaster. This team should be trained to handle the unique challenges that arise during these events and be empowered to make quick decisions.
Establishing dedicated claims hotlines, Google forms, or online portals can expedite claims processing; this includes implementing a fast-track process for common types of claims, which can free up resources for more complex cases.
Let’s talk about tech
Fax machines aren’t portable. Technology plays a critical role in supporting clients during disasters. During client onboarding (i.e., before a disaster), train clients to use mobile apps offered by various insurance companies. These apps allow clients to file claims directly from their smartphones and are particularly useful when traditional communication methods are disrupted.
Some insurance companies have processes to utilize remote adjusters who can assess damage via video calls or photo submissions. This not only speeds up the claims process but also ensures the safety of both clients and your team during hazardous conditions.
Consider offering self-service features to your clients that help alleviate increased call volume during disasters. For example: Explore options for creating a chatbot on your agency’s website that allows clients to find their policy information and obtain company claims contact information quickly.
Secure accessibility to client
data, now
In the insurance industry, client data is one of your most valuable assets. Your office simply will not be able to operate without access to client information. Ensuring the integrity and accessibility of this data before a disaster is crucial for maintaining service levels and client trust during a disaster. Consider transitioning your client database to a cloud-based CRM system to allow your team to access client information from any location, ensuring continuity of operations even if your physical office is compromised.
Investing in high-security cloud services to protect client data from cyber threats that could arise during a disaster is equally important. In addition, regularly backing up data and implementing automated backups that store copies of client information in multiple locations, including off site or in the cloud, provides additional layers of security. A well-tested data recovery plan ensures that client information can be restored quickly in the event of a data loss incident.
In days gone by, insurance businesses relied on paper files, and you can too if needed. When the power is out, internet is unstable, or systems are offline, your teams should be prepared to operate manually. A well-prepared office will print their client database at regular intervals (monthly or quarterly depending on business growth rate) and distribute copies to their team. Having manual copies of client information available will ensure that your office is most prepared if technology fails.
Other essential considerations
While client-focused strategies should be a primary concern during a disaster, it’s important not to overlook other critical aspects of your business continuity plan. These areas support the overall ability and agility of your agency to continue serving clients effectively.
The increased mobility of business operations post-2020 has transformed how insurance agencies should prepare for natural disasters. Equipping your team with portable laptops and docking stations, replacing stationary computer towers, allows employees to easily relocate and continue operations from alternate locations if necessary.
Taking time to identify potential temporary workspaces is also vital. Temporary operations may take the form of reciprocal agreements with friendly competitor offices, public libraries, or rentable co-working office spaces that can provide your team with a place to work if your primary office is inaccessible. Additionally, outline procedures to redirect office phones to off-site lines or employee cell phones to ensure that client calls are not missed, even if your office is out of commission.
Let’s not forget that your employees are essential to maintaining client service, so ensuring their well-being during a disaster is crucial. Implementing Employee Assistance Programs (EAPs) that offer financial counseling, mental health support, and other resources can help employees cope with the aftermath of a disaster. Flexible work arrangements, including remote work, accommodate employees who may be dealing with personal losses or displacement due to the disaster.
And, finally, take your own advice and secure business interruption insurance to help cover payroll and other operating expenses during a temporary shutdown, providing financial stability for your team and your business.
Are you prepared?
In the insurance industry, the ability to maintain client trust during a natural disaster is paramount. By prioritizing client-focused strategies such as proactive communication, streamlined claims processing, and maintaining the integrity of your client database you can ensure that your operation remains a reliable partner to your clients when they need you the most.
By planning ahead and considering both client and operational needs, you can ensure that your agency is ready to face any natural disaster and continue providing the essential services that your clients depend on.
The author
Dustyne Bryant, MBA, CIC, CISR, is the director of Risk & Insurance Education and Research, personal lines academic director, and host of the Awkward Insurance Podcast for the Risk & Insurance Education Alliance. Dustyne is licensed in P&C and L&H in Arkansas and P&C in Texas. Dedicated to personal lines insurance since 2007, she has a demonstrated strength in technical comprehension cultivated through working with a vast selection of regional, national, and surplus lines carriers as a licensed agent, account manager, and department leader. She graduated from the University of Arkansas at Little Rock, obtaining her MBA (2015), B.S. cum laude, Criminal Justice (2011), A.A., Law Enforcement (2010), and Conflict Mediation Graduate Certificate (2015). She earned her CISR designation in 2011 and CIC designation in 2012.
In her role, Dustyne collaborates with industry educators and colleagues, and other experts to deliver relevant and well-researched practical educational content to growing risk and insurance professionals.