Brokers shouldn't shy away from risk, says Eric Galbraith, it's what they excel at
I just happened to turn over the TV on Monday to Newsnight and was fascinated to watch a discussion on the research being undertaken on genetics. Much of the programme was devoted to a discussion with Craig Venter, the controversial American scientist, who is famous for his involvement in the race to map the intricacies of the human genetic code.
His latest project is to create life forms which can produce clean energy. I don’t profess to understand all that he was talking about, but the potential benefits for mankind of Venter’s technology were clear to see - so too were the pitfalls should this knowledge fall into the wrong hands.
Still on a scientific theme, BIBA welcomed Professor Sir David King, chief scientific adviser to the Government, to its offices recently. He was invited along to discuss with a number of our members some of the major hazards facing society that the government is having to factor into its policy making decisions – all of which will have an impact on the insurance industry.
Brain science/addiction to drugs, sustainable energy, climate change, flooding, global pandemics and obesity were just some of the issues discussed. It was a useful forum in which to explore how the government could work in partnership with the industry to achieve common goals. I believe it safe to say that Sir David left our offices with a very different picture of the broking community than when he had arrived.
Those discussions helped his understanding of how big a role the broker plays in helping their clients from insurers, national governments, multi-national companies to the private individual understand and mitigate the effects of risk.
Society may well be becoming more risk averse, but that doesn’t mean that risk is going to go away. Risk expands along with our knowledge of the world. More risk means more opportunities for brokers. Commoditisation, consolidation, aggregation and the relentless focus on price will never drive away the need for advice on identifying, measuring and managing risk and risk transfer through the purchase of insurance or by other means. Nor will it dent the entrepreneurial spirit of the broker as they recognise and respond to not only existing risks but new and developing ones on behalf of their clients – it is after all what they excel at.
