Insurers will benefit from companies who provide greater levels of risk management
An increase in risk reporting and risk management by top companies is likely to open new doors for insurers, according to a report published this week.
With the majority of the UK’s biggest businesses now choosing to evaluate the way in which they manage risk more seriously, insurers can take advantage of new business opportunities as a result.
Research conducted by Marsh revealed that FTSE 100 companies were reporting risk “above and beyond” what the UK’s regulatory regime requires.
The broker said it had noticed a “massive increase in sophistication”, with companies now asking: “What is the value of insurance that we spend millions on every year?”
Insurers will be given greater details of risks and will ultimately be able to increase the level of service to meet to different levels of risks and ensure that they can offer a satisfactory level of cover.
The study by Marsh examined ten years of annual statements by 41 of the current FTSE 100, and found that many see a value beyond regulatory compliance from reporting on their risks and risk management
“Gone are that days when you have to ask companies ‘have you got risk management?’ as now it is ‘how are you using risk management?'" according to James Maxwell, principal consultant in the Marsh risk consulting practise.
He said: “This can improve the risk profile of the company that they are insuring.”
“Company’s will be able to provide greater accuracy in the way that they manage risk, and that would be absolutely beneficial to insurers.”
