Rely on Insurance to Protect the Bottom Line The cost and availability of insurance is under pressure across many industries and geographies. According to the HUB survey, economic challenges and inflation have significantly to moderately affected 81% of companies' ability to secure ample insurance coverage. 73% of companies report being underinsured 39% of companies describe analytics as against profit-threatening risks, a slight extremely important and 27% regard it as improvement from 76% in 2023. Commercial significantly important to the structuring and coverage for property, general liability financing of property insurance. and umbrella insurance has all decreased compared to 2023. 96% of respondents do not have a formal process to identify and derive their annually 63% describe their property insurance as a reported property values and exposures. traditional model with coverage provided by a single carrier per line of business. How Your Broker Can Help: Risk Transfer Strategy The risk exposure facing businesses across North America is substantial and without adequate insurance, the risk of bankruptcy is high. Here’s how your insurance broker can help. • Make sure your insurance broker thoroughly understands your business model, your company’s challenges and goals before recommending coverage. Don’t treat insurance like a transaction or a procurement exercise. • Use benchmarking and stochastic modeling to shape the structure and financing of your property insurance. While benchmarking continues to be valuable, there’s been a massive acceleration in the use of analytics that helps companies manage costs and “see around the corner.” • Your insurance broker should have a demonstrated track record in helping companies reduce losses and claims. Underwriters give preferential treatment to brokers who have lower than average loss ratios on their book of business because it signals a commitment to risk management. • Alternative approaches to traditional insurance might be a viable option. Based on historical losses, you may be able to save money by combining property and casualty coverage on an excess policy. Or you may secure a multi-year insurance program where a percentage of premiums are returned if losses are better than anticipated. Another option is insurance programs that require a letter of credit. • Identify the assets and the emerging risks that cannot be covered and lean into enterprise risk management to mitigate it. HUB International 2025 North American Outlook Report | 14