LeAnne McCorry has 23 years of experience working in the insurance industry, including 19 with Aon Risk Services. She is the resident managing director of the Detroit office of Aon. Her concentration is in developing client-specific service strategies, designing individualized approaches and building associated teams of Aon resources necessary to meet client needs.
Q. How will managing risk help your bottom line?
It’s important when it comes to managing risk and buying insurance to make informed decisions similar to how you make any other decision in your organization as far as capital allocation goes. If you’re making informed decisions, which provide you with coverage for losses when they occur, that will help protect your balance sheet and income statements whether it’s from a first-party loss, such as a fire, or a third-party loss, such as a products liability claim.
Q. Are companies facing different risks today?
Absolutely. The magnitude, scope and complexity of risk is greater than it has ever been before, and there has never been a better time for our industry to serve the needs of our clients in order to help them achieve sustainable growth, continuity and profitability. Companies are facing risks that appeared remote just a couple of years ago. Some of the risks are lack of credit, reduced consumer spending and the counterparty risks they may face. I think the other important thing is that many of our clients are under pressure to reduce spending, and they have fewer resources within their organization, so it’s a balance of how you properly protect your balance sheet and your income statement while having fewer resources and spending less money.
Q. What insurance should companies be covered under today?
People are buying insurance differently than they were before. Companies are analyzing the retention that they take, the amount of limits they buy and what coverages are absolutely necessary to have. They need to make sure they are meeting their statutory requirements as well as loan covenants. In addition to that, companies need to really look at what risks they are facing and make individual decisions on how critical those risks are to their organization and where should they buy insurance versus where they have the ability to cut back.