Our Risk Distribution survey of 25 of Europe’s leading brokers and 10 of the leading insurance companies found, however, that brokers and insurers will need some convincing.

The overall opinion was that the idea should be investigated because there remain too many inconsistencies in this area. But the insurers in particular are worried that by giving away too much information they could give away some hard-won competitive advantage.

They will need to be convinced that a common facility would be in their interest before throwing their full weight behind such an effort.

For now, however, the effort appears to be on track.

It is thought that during the latest meeting all parties agreed that the idea to set up a single shared facility to provide up to date information on local insurance rules would be very useful.

Such a facility could include details of compulsory insurances and regulations on admitted and non-admitted classes, regulations on intermediaries, requirements concerning the use of state insurers and reinsurers, restrictions in local coverage and the need for licenses and restrictions on wordings.

Many of the risk managers surveyed in the Risk Frontiers survey have pointed out that there are some databases already in existence that provide the kind of information that this effort plans to gather and codify.

But there is a general view that these databases are really designed for the wider insurance industry and do not provide enough information of direct relevance to risk and insurance managers. Hence the need for a specific solution for corporate risk and insurance managers.

It is believed that during the meeting the parties discussed whether the proposed system should focus on raw data and then allow the insurers and brokers to use their own tools to interrogate the data and apply it how they wanted or whether the tools would need to be integrated into the system. It was reportedly agreed that the facility should be kept as simple as possible and only focus on the data for now.

To move the initiative on the group will now have to agree a draft proposal for the facility and then seek proposals from possible vendors.

As was discussed during the CRE event in March and stated by many risk managers during the Risk Frontiers survey, this effort will only really work if it is backed by the relevant international risk and insurance associations and also authorities, hopefully led by International Association of Insurance Supervisors (IAIS).

During the conference Airmic Chief Executive John Hurrell said that ideally the responsibility for updating the database would be given to the insurance supervisors themselves to ensure that insurers and risk managers that operate in their territories comply with their rules.

It is thought that RIMS, the US risk management society, has said that it may be willing to become involved at some stage. The IAIS has not responded to requests from CRE about whether it would value such an effort and contribute but will hopefully respond once the group has firmed up its proposal.

This initiative will be discussed in depth at Commercial Risk Europe’s seminar on Solvency II, captives and global programmes in Frankfurt on November 2. We have partnered with ECIROA, DVS, the BfV and the BDI (German confederation of industry) for this event, have a great line-up of speakers and expect a good turn-out of risk managers who will be given ample opportunity to quiz officials, including the IAIS, about the latest developments. The event is free for CRE readers. Please contact Hugo Foster hfoster@commercialriskeurope.com to book your place.

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