Spotlight: Greg Bates, VP of Risk Engineering Services

Greg Bates believes that risk engineering is more impactful than ever.

After nearly 20 years in the industry, he’s seen hard markets, pandemics, extreme weather, and much more. The current environment is the most challenging he’s seen for risk managers, even if the market is softening slightly.

The challenge of helping companies navigate these waters convinced Bates to return to Global Risk Consultants (GRC). He was recently named Vice President of Risk Engineering Services after serving as the Director of Business Assurance for the Americas region of TÜV SÜD. He previously spent 16 years with GRC in engineering, client relationship, and leadership roles.

In a recent interview, Bates offered his take on the property insurance market, emerging risks, and the future of GRC.

How might the property insurance market look through 2024 and beyond?

I wish I had a crystal ball and could predict the market cycle; however, I am hearing that the market is softening to some degree already. I would expect the market to remain challenging in 2024 based on industry and exposure. Recent loss data remains at an elevated level mostly due to natural hazard events, however insurance industry surplus levels are strong which suggests large losses can be handled and new risk can be underwritten. We continue to monitor market conditions and make every effort to be ready for the next phase.

How has the hard property insurance market affected companies and influenced the importance of risk engineering?

Risk engineering is more important than ever due to the challenging insurance market. It enables our clients to get the best rates, terms, and conditions by showcasing their approach to risk management. We have partnered with our clients for over 65 years and have been a part of the insurance cycle, however the current market is likely the most challenging due to increased climate change risks and current global economic conditions. Risk engineering helps provide the insurance market with additional data and clarity around these risks.

What do you hope to accomplish as the Vice President of Risk Engineering at GRC?

I have two major goals when I think about my new role – drive growth and develop the business development team. GRC continues to grow at a steady pace, but we are always looking to expand our business by helping our amazing clients. We have a great business development team, and we are looking to expand it in various key industry verticals and geographies. Focus points for 2024 include sales performance and operational excellence while keeping our clients at the center of everything that we do at GRC.

You spent most of your career at GRC but recently left to lead TUV SUD’s Business Assurance team. Why come back to GRC now?

I left GRC in 2020 during COVID because I wanted a new challenge. I enjoyed the work with Business Assurance, and we made some great strides, but my professional foundation lies in risk management and loss prevention. The timing works out well for me as the Business Assurance business is stable and in a good spot for their next leader. GRC has continued to have strong performance, and I am excited to come back and help drive additional growth. The current insurance market challenges and future market trends make the return even more energizing for me in my new role.

What are some emerging risks for 2024 and beyond?

Climate change and Environmental, Social and Governmental (ESG) risks seem to be the most popular buzz words. These items are pushing many risk managers outside of their comfort zones. There are also still supply chain risks in our global economy that continue to evolve. Still, all of the risk managers I know are very resilient and will figure out how to address these new challenges.

After inflation, property valuations are inaccurate, and companies may be underinsured. Can you discuss the danger to companies in those situations?

Valuations have become critical with drastic inflation increases in recent years. Accurate values have always been a vital piece of the insurance puzzle since they are the foundation for policy coverage. Misstated insurable values can lead to too much coverage which results in wasted capital or too little coverage which results in claims gaps. There is nothing worse than thinking you have adequate coverage only to learn that you are underinsured and accepting more risk than desired. In the event of underinsured losses, companies can suffer unintended financial hardship.

GRC is conducting an expansive initiative to train young professionals in risk engineering. How is that process going and how might it impact our customers in the future?

I love the GRC training initiative targeting young professionals. This program has already proven to be worthwhile. It addresses current and future manpower concerns but also provides fresh perspective and youthful energy which is very refreshing. Our operations team has done a phenomenal job with this program and has exceeded expectations. One of our leadership commitments is to focus on people growth globally and this program has quickly addressed any gaps.

Want to chat with Greg about your risk engineering needs? Contact us now.