Brown & Brown is a full-service insurance brokerage established in 1939. One of the reasons we have been successful for so long, and place over 14 billion dollars in insurance premium annually, is because we have a process. Our process allows us to determine how an insurance program will respond to a claim before it happens. Ultimately, this allows us to build a program with comprehensive coverage at a competitive price. This is what we consider creating value for our clients, and this is why we are different from our competition.
It is virtually impossible to determine every potential cause of loss. If we could do that, then we would only buy insurance for those causes of loss we have identified. What we can do is build the best possible policy for the least amount of money – this is creating value. This is the essence and purpose of our proprietary analysis, a very important risk transfer technique.
If we accomplish this, the policy is constructed to live with the possibility of risk versus anticipating it, which simply equates to a bad bet. Because we do not have a crystal ball we must have a process, otherwise we are simply spinning the wheel of misfortune.
Brown & Brown’s process centers on a proprietary policy analysis that examines each line of coverage individually to provide a holistic indication of the overall insurance program’s effectiveness.
The Epistemology of Risk
Many people believe that no evidence of risk is evidence of no risk. The complication of these similar two thoughts are that they are vastly different, but appear to be similar and the latter can be easily replaced with the former; creating beliefs that are not only unjustified but also potentially harmful.
Therefore when we think of risk and risk transfer (insurance) we must think of possibility over probability especially when possibility can be avoided at no increase in cost.