Aon says risk management is key in flu threat

Insurers are unlikely to take action to improve policies and protect companies in the wake of an avian flu pandemic, Aon has warned.

The broker said most companies would be better off formulating risk management policies to protect their staff and business rather than relying on insurance.

Martin Dockrill, project manager for the avian flu taskforce at Aon, said most insurers did not regard avian flu as a big issue. Many business interruption policies did not insure companies against such an event, which could leave businesses exposed to huge losses.

The warnings come after the recent outbreak of avian flu at a Bernard Matthews turkey factory in Suffolk.

Dockrill said: "We think there has to be proper risk analysis of the non-mortality side. Only when we have decent analysis can we get risk transfer."

He added that he expected the analysis to become a job for brokers.