GLOBAL INSURANCE COMPLIANCE FASTEST-RISING RISK MANAGER CONCERN

The compliance of global insurance programmes is the fastest-rising of Airmic members’ concerns, according to the latest survey of their attitudes. It now ranks second only to reputational risk as their main worry. Business interruption and supply chain risks were also very high on the list.

Members are much less concerned than they used to be, however, about insurer security and broker remuneration, which were once among the topics most likely to keep them awake at night.   

Risk managers and insurance buyers were asked to name their top three concerns. 30% chose ‘the impact of reputational risks’, 28% ‘multi-national insurance programme compliance’, whilst 25% cited business interruption and 23% supply chain risks.

There has been mounting anxiety about how to make global programmes meet the network of international insurance premium tax and regulatory rules. These can change without notice, are sometimes unclear and can vary by class of business. With some countries like the USA there are also internal variations. Companies or individuals that break the rules face fines, possible imprisonment and loss of insurance cover.

There are growing levels of concern also about cyber risk (19%) and the possibility of non-disclosure of material information to underwriters (17%). Only just over a quarter (26%) of respondents expressed themselves ‘totally confident’ that they are disclosing all material information to their underwriters.

83% of Airmic members regard the willingness of their brokers to disclose their remuneration as either ‘good’ or ‘very good’ with only 4% rating it ‘poor’. Their remains, however, substantial concern that the way their intermediaries are remunerated could create conflict of interest; 43% thought it might against 51% who felt otherwise.

Possible insurer insolvency, which became the dominant fear during the financial crisis, has receded.  Only 3% saw it as one of their top three concerns. The speed with which they pay claims remains a mixed picture, with only 53% rating it good or better. 24% have had a claim refused in the past two years.

For further information contact Mark Baylis, Complete Communications, +44 (0) 7775 693994, mark.baylis@airmic.co.uk