Today, a crisis is also a matter of reputation

Mr. Schachner, when it comes to insurance, those of us who are a bit older think of the Hamburg-Mannheimer TV commercial featuring “Herr Kaiser,” the most famous fictional advertising character for insurance in Germany from the 90s. Do you as well?

Of course, those of us who are a bit older remember “Herr Kaiser” from those past TV commercials. He is emblematic of a time when insurance was primarily sold via products and policies in the private sector. Our business at MARTENS & PRAHL Jaspers, however, is entirely different. We do not see ourselves as insurance salespeople, but rather as risk advisors for companies. Our goal is not to broker as many policies as possible, but to protect our clients from business-threatening risks. To achieve this, we identify risks within the company, compare them against existing policies, develop customized safety concepts (prevention), and ensure that the insurance coverage actually responds in the event of a claim.

What exactly does the term “risk advisor” entail?

A risk advisor doesn’t just deal with a loss after it happens, but ideally long before it even occurs. We take a holistic view of companies: from production processes and supply chains to cyber risks, crisis management, and emergency planning.

In doing so, our clients benefit from an interdisciplinary approach. For example, we have our own fire protection engineers and other specialists who analyze risks directly on site and recommend specific improvement measures. For us, insurance is not an end in itself, but a single component of comprehensive risk management. The better a risk is managed, the more secure and cost-effective the insurance coverage becomes. In short: We actively help to save on premiums.

You say that an insurance policy only provides a “false sense of security.” Can you explain that?

Many companies assume, that by taking out an insurance policy, they are automatically on the safe side. The reality is often more complex. A policy can only offer protection if it perfectly matches a company’s actual risks and the contractual terms have been drafted correctly.

Time and again, we see cases where companies were indeed insured, but discovered in the event of a claim, that individual risks were either not covered or were inadequately covered. That is why we place great emphasis on analyzing risks in detail before a contract is signed, and on regularly adapting insurance programs to changing circumstances. True security comes from understanding the risks, not just from the mere existence of a policy.

The representative clause (Repräsentantenklausel) is an important provision in insurance contracts. Could you elaborate on that?

In an emergency, the representative clause often determines whether an insurer has to pay out or not. Put simply, it dictates whose behavior is legally attributed to the company.

This is of considerable importance, especially for larger organizations with multiple locations and areas of responsibility. If the clause is poorly worded, the misconduct of individual persons can have far-reaching implications for the insurance coverage. Therefore, when drafting contracts, we pay special attention to ensuring that our clients do not take on any unnecessary coverage risks. It is often precisely these details in the policy wordings that can determine million-euro payouts when a claim arises.

Based on your many years of experience, which crisis situations cause the most extensive damage? And which risks do you think are frequently underestimated?

The largest losses are usually not caused by single, isolated events, but by a combination of several factors. Major fires, cyberattacks, business interruptions, and industrial product recalls are particularly severe. Often, the consequential costs exceed the actual property damage many times over.

Dependencies within supply chains, cyber risks, and reputational damage are frequently underestimated. Many companies have excellently secured their own production but rely on a few critical suppliers. If one of them fails, it can have substantial economic consequences. Similarly, cyberattacks today are increasingly evolving into comprehensive corporate crises with financial, legal, and communicative repercussions.

A policy is only truly put to the test when a claim occurs, and very often, it is only during a major loss event that mistakes come to light.

Classic pitfalls include:

• The insured sums are incorrect or were calculated improperly. The consequence isunderinsurance.
• Violations of regulatory requirements, such as building permits and operating licenses.
• Inspections of electrical installations were not carried out in accordance with the contract, or identified defects were not rectified.

The geopolitical shifts of recent years are triggering additional crisis situations. To what extent are these changes affecting your business?

The world has become more complex and volatile. Wars, sanctions, trade conflicts, political instability, and new regulations directly impact companies and their risk profiles.

For our clients, this means that risks must increasingly be viewed from an international perspective. Transport routes are shifting, supply chains are becoming more vulnerable, and new liability issues are emerging. At the same time, insurers are responding with stricter risk assessments and altered terms and conditions. Our job is to identify these developments early on and assist our clients in actively managing risks and adjusting their insurance solutions accordingly.

In your view, what are the hallmarks of good crisis communication consulting or a good crisis agency?

Good crisis communication begins long before a crisis even arises. The decisive factor is the ability to identify risks, prepare scenarios, and remain capable of taking action in an emergency.

The best crisis consultants combine strategic thinking with operational experience. They help companies formulate clear messages under extreme time pressure, maintain trust, and address the right stakeholders. A deep understanding of the respective industry and the ability to communicate even complex issues clearly are particularly important here.

From our perspective, the best crisis management occurs when risk advisors, company management, and communication specialists work closely together. Because today, every crisis is not just an operational or financial challenge, but always a matter of reputation as well.

How is digitalization changing corporate risk management?

Today, digitalization is far more than just a matter of efficiency. It increasingly determines how quickly companies can identify, control, and manage risks.

With our CAMPUS solution, we offer clients a digital platform that creates transparency, simplifies processes, and makes risk information centrally available. Especially for medium-sized and international companies, the digital management of insurance and risk data is becoming a decisive competitive advantage. Those who can identify risks faster and make well-founded decisions are more successful and resilient in the long term.

This trend will continue to accelerate in the coming years. That is why we continuously invest in digital solutions that support our clients in managing risks efficiently and in a future-proof manner.

Here is a short explainer video for our CAMPUS solution: https://youtu.be/ljsqoBsbpFY