KUALA LUMPUR: Liberty General Insurance Bhd is calling for a shift in how businesses approach risk management, emphasising that businesses need to move beyond viewing insurance simply as a financial product that responds after a loss and embrace it as a key element of a broader business resilience strategy.
Chief specialty lines officer Ang Jiin Tsuey said Liberty’s approach is to work with businesses to better understand their operations and evolving exposures so that protection remains relevant as risks change.
“Commercial and complex risk insurance coverage plays an important role in helping businesses prepare for less conventional risks that could have significant operational or financial consequences if they are not properly managed,“ she told SunBiz.
Ang said that one of the biggest changes the insurer observed is that businesses today face increasingly specialised and interconnected risks.
While protecting physical assets remains important, organisations are also recognising the need to prepare for operational disruptions, product-related incidents and other complex exposures that may not always be addressed through traditional insurance, she added.
“At Liberty, we encourage businesses to regularly review their risk profile as their operations evolve. Having the right protection in place is not only about responding to incidents, but also about supporting business continuity and long-term resilience.”
Talking about the challenges of today’s digital environment and how organisations can recover quickly, Ang said preparation is often the biggest differentiator.
“Businesses that recover well typically have clearly defined response plans, established internal processes and appropriate protection in place before an incident occurs.
“We are seeing increasing awareness of the importance of crisis preparedness, particularly in industries where product-related incidents can have wider operational and reputational consequences.
“Having access to specialised solutions allows businesses to respond more effectively while minimising disruption,“ Ang said.
Focusing on specialty insurance, which is often associated with large corporations and multinational organisations, Ang said Liberty is increasingly seeing SMEs face similar operational challenges as large corporations, particularly as supply chains become more interconnected and businesses expand into new markets.
“Our role is to help businesses understand where specialised protection may add value, regardless of their size. The right solution depends on the nature of the business and its specific risk exposures,“ Ang said.
To note, specialty insurance is coverage designed for unique or high-risk exposures that standard insurance policies typically do not cover.
Elaborating on misconceptions businesses have about specialty insurance, Ang said one common misconception is that specialty insurance is only required after a business reaches a certain size.
“In reality, specialised risks depend less on the size of a business and more on the nature of its operations.
“Businesses involved in manufacturing, food production, pharmaceuticals or specialised supply chains, for example, may face unique exposures that require more tailored protection.
“Here at Liberty, we believe understanding these risks early allows businesses to make more informed decisions about their protection needs.”
Looking ahead, Ang said Liberty expects businesses to continue operating in an environment where risks become increasingly specialised and interconnected.
“As operations evolve, organisations will need to regularly review their risk exposures and ensure their protection strategies continue to reflect their business activities. At Liberty, we see our role as helping businesses better understand these evolving risks and providing solutions that support resilience, continuity and long-term confidence,“ she added.
