In Focus: How important is it for insurance to move beyond indemnity and into risk mitigation?

Claud Bilbao, regional vice-president of underwriting and distribution, Cowbell UK

Today, data, software, intellectual property and digital infrastructure outweigh physical stock or property in overall value – but insurance priorities have not kept pace and it is essential for the sector to evolve.

Most businesses still think first about insuring what they can see and touch – however, their digital assets remain neglected.

Nowadays, insurance customers expect more than just a policy that pays out after an insured event. They want to be supported with risk mitigation strategies, to gain a deeper understanding of their cyber risk and how they can prevent attacks before they occur.

Insurers need to be using continuous risk assessments to provide customers with product customisation that keeps pace with the reality of a rapidly changing risk landscape, aligning this with integrated cyber resiliency services – for example, managed detection and response services, cyber security training and penetration testing.

Brokers are an essential part of this journey. They need to be fully equipped with the knowledge to facilitate clear discussions about cyber insurance and understand which providers are rewarding companies that put risk mitigation practices in place.

Kelly Ostler-Coyle, head of communications and stakeholder engagement, Flood Re

Risk management and risk mitigation should be a priority when it comes to property flood insurance – not only for those providing cover for householders currently at high risk of flooding, but for those that may be at risk in the future.

Climate change ramifications are accelerating and while the insurance market is making great strides towards promoting property flood resilience measures – which are the cornerstone of Flood Re’s Build Back Better scheme – work is still needed to ensure that the whole insurance ecosystem is united in helping to educate end customers.

The Build Back Better scheme sees participating insurers offer up to £10,000 to install flood resilience measures into eligible properties as part of the repair process following an insured event.

The stark reality is that the insurance market will return to risk-based flood insurance underwriting in 2039 when Flood Re exits the market, so the pace of adoption and adaptation needs to accelerate.

And while an encouraging 77% of the UK insurance market is committed to offering Build Back Better as an option, the major challenge is to help the wider public recognise their own flood risk and understand what actions they can take – both within and outside their property – to protect their homes.

That is why we launched our e-learning portal, the Flood Re Academy, in April 2025, to help ensure the whole insurance market is au fait with the Flood Re and Build Back Better schemes, how they operate and the benefits of property flood resilience measures. The Academy is free and anyone in the insurance market can access it.

Bill Bradshaw, operations senior vice-president, FM

The increasing frequency of natural catastrophes exposes businesses to new risks.

Organisations are now looking for more than just competitive premiums – they are seeking proactive loss mitigation, contract certainty and seamless claims handling. These elements have become the cornerstone of value driven risk management, ensuring businesses are better prepared for emerging challenges.

But while insurance is important to protect the financial interests of a business, it is also vital that risk management professionals place just as much effort on mitigating risks as they do on transferring them.

Why? Because all major losses also involve uninsurable aspects, such as lost market opportunities and lack of investor confidence.

This offers opportunities for insurers to innovate and create value. The transition to renewable energy, for instance, is not only a risk to be managed, but a chance to pioneer sustainable propositions. Similarly, a focus on resilience and climate reporting allows organisations to differentiate themselves competitively.

By leveraging advanced engineering capabilities and fostering close partnerships, insurers can stay ahead of emerging risks and seize potential opportunities for growth.

Ensuring the reliability of renewable energy projects, redefining the value of risk management, or supporting compliance with climate regulations – a proactive approach can empower a business to be more resilient. Ultimately, these resilient companies are more successful in the long term.