Wednesday, 13 June 2012
Reputation, claims and supply chain risks biggest concerns for Airmic members
Damage to reputation, claims payment and supply chain are the key concerns of risk managers, according to Airmic’s annual survey of its members.
Around one half (47%) of the 108 risk managers that took part in the survey cited the ‘impact of reputational risks’ as one of the three types of exposures about which they are most concerned.
Non-damage business interruption (37%), supply chains (35%) and the loss or theft of personal data (34%) also featured highly on the list.
Forty per cent of respondents highlighted the payment of large claims as the issue that most keeps them awake at night. Lack of innovation by insurers came second, with speed of claims third.
Fewer than 50% of risk managers are ‘totally confident’ or ‘very confident’ that they have achieved full disclosure of material facts when purchasing insurance policies, the survey reveals.
Airmic said this confirms its view that disclosure burdens, under the present legal framework, are unduly onerous.
Twenty-eight per cent of the sample said they had a claim refused in the past two years, with 10% being challenged on grounds of non-disclosure.
“These results confirm that the issues we keep highlighting really are important to our members,” said Airmic Chief Executive John Hurrell. “The Roads to Ruin research we published last year emphasised the importance of good risk management to corporate reputation, whilst we have been working hard to improve the claims environment.”
“We are also about to announce significant progress towards the establishment of a global insurance compliance database and publish the first tranche of our research into cyber-risk,” he added.
Airmic also announced this week that it has signed an agreement with Cranfield University to produce a follow-up to its Roads to Ruin report.
Whereas the first report examined the factors behind corporate failure, the second one has been given the title Roads to Resilience. It will look into the factors that enable companies to avoid or successfully negotiate crises.