Meet Daniel, a dynamic entrepreneur and founder of a specialised insurance firm that caters to a diverse range of needs, including fire, public liability, motor, professional liability, trade credit insurance, etc.
With a deep understanding of risk management and a commitment to providing tailored solutions, Daniel helps businesses and individuals safeguard their assets and operations with confidence. His expertise and dedication have made him a trusted name in the industry, ensuring clients have the protection they need to thrive in today’s fast-paced world.
What motivated you to start an insurance company that’s focused on corporate insurance, and how do you identify the need for these specific coverage options?
The motivation to start this business comes from a long story. Initially, we started with life insurance, and from there, we transitioned to corporate insurance because we found that corporate insurance is not just a want, but a necessity.
This allows us to help clients manage their needs based on corporate requirements, such as replacing property in the event of a fire or handling liability when a company provides services to customers. Each industry has specific needs, such as different requirements for food and beverage businesses, construction companies, or manufacturers.
We need to be very specific in our approach. For instance, financial services may require product liability insurance, especially in manufacturing or trading, to cover the risk associated with their products. This is a niche area that we focus on.
Can you explain the importance of corporate insurance in today’s business landscape, particularly for industries that need specialised coverage?
Fire, public liability, and workmen compensation are essential. Workmen compensation is especially necessary as it is required by the Ministry of Manpower. Without it, if a staff member goes to the Ministry of Manpower to file a complaint, the company would have to pay for medical fees and disability income, which can be over $100,000.
Fire and public liability insurance are necessary, especially for businesses with stock in a warehouse. If a fire or water damage occurs, fire insurance will help recover stock. Public liability covers damages caused by negligence, such as third-party property damage or bodily injury.
Trade credit is becoming increasingly important, particularly with the current economic climate. If a company offers credit terms (30 or 60 days) to clients and they don’t pay, the company can lose money. However, with trade credit insurance, if the client defaults, the insurance company will cover the amount owed, allowing the business to protect its revenue.
Offering trade credit can boost sales, as businesses are more likely to give credit to clients if they are protected. These are all important aspects that businesses should consider to safeguard their interests.
How do you tailor insurance packages to suit the specific needs of a business, especially those with unique operational risks or sectors?
For businesses with specialised needs, like vessel management, we ensure that workers on the vessels are covered and that any third-party property damage caused by the vessel is insured. If workers need to travel overseas, we also include travel insurance.
Similarly, professionals such as architects, doctors, and lawyers may require professional indemnity insurance to protect against claims arising from their advice. If a client claims that poor advice led to financial loss, professional indemnity will cover the risk. These are examples of how we tailor insurance packages to meet the unique needs of various sectors.
For SMEs starting out, it’s important to focus on the basics. Workmen compensation insurance is a must, as is fire and public liability coverage, especially if you have employees and a physical location.
What role does risk assessment play in your approach to corporate insurance, and how do you ensure that businesses are adequately covered without over-insuring them?
Risk assessment is crucial when determining the right coverage. We visit the client’s site to assess factors like the size of the factory, the type of firefighting facilities available, and the structure of the building (e.g., concrete vs. zinc roofs). This helps us understand the risks and provide accurate coverage.
We also consider specific risks like the type of work employees do and their job environment. Based on these assessments, we can advise clients on the appropriate insurance coverage, ensuring they aren’t over-insured. For example, if a building needs to be insured for $1.5 million, we won’t over-insure it for $3 million, as that would be an unnecessary cost.
Can you share one success story where your corporate insurance helped a business recover from a significant loss or risk?
One success story involves a worker who was injured in a car accident while driving for one of our clients. The driver fractured his leg and hip, requiring hospitalisation with a total bill of $189,000.
Thanks to the workmen compensation insurance, the client was able to cover the costs without financial strain. Without insurance, the company would have had to pay this amount out-of-pocket, which could have impacted its liquidity.
How do you see the future of corporate insurance evolving, especially with the rise of new industries such as cybersecurity, and the increasing need for cyber liability?
With the rise of the internet, cyber insurance is becoming increasingly important, although many businesses are still hesitant to take it. However, with the growing prevalence of cyber threats, more companies are recognising the need for this coverage.
Similarly, trade credit insurance has gained more attention due to the current economic uncertainty. Companies that offer credit to clients now see the value in protecting themselves against the risk of defaults. While these types of insurance aren’t new, their relevance has grown in response to changing market conditions.
What advice would you give to SMEs that are just starting to consider corporate insurance for the first time?
For SMEs starting out, it’s important to focus on the basics. Workmen compensation insurance is a must, as is fire and public liability coverage, especially if you have employees and a physical location.
Motor insurance may also be necessary if you have a fleet of vehicles. While cost is a concern for many SMEs, it’s essential to prioritise the coverage that will protect the business from the most significant risks. We work with SMEs to find the best rates and help manage costs while ensuring they are adequately covered.
Where do you see yourself and what’s your vision for Singapore in the next five years?
I plan to continue expanding and collaborating with different sectors to grow our market presence and leverage each other’s strengths. As long as we continue to provide value and support to our clients, we will see growth.
I see the insurance landscape in Singapore being challenging due to high costs and a shift away from manufacturing. However, service-based sectors, financial services, and research (especially bioscience) will continue to grow. Insurance will play a key role in supporting these sectors. Retail and construction may face challenges, especially as more people shop online.
Connect with Daniel: Instagram and LinkedIn.
