MEGA-LOSSES - NEW RULES FOR A NEW WORLD
The really big losses are growing in size, frequency and complexity, and the way they are handled is changing too, the AIRMIC conference heard today. Organisations whose risk managers understand their insurers’ processes stand to make a better recovery from disasters and to contain their claims records.
Insurance companies will only throw resources at big losses if they can control expenditure and the way it is directed, Peter Shaw of Crawford & Company told a break-out session. Typically, this will involve the creation of a project plan, based around a template that tracks the speed of recovery, the actions taken and their cost – all measured by different heads of claim.
“Risk managers need to understand how their insurers are thinking and to establish a good working relationship with their adjusters. This should preferably happen before there’s a serious accident so that, if one does occur, we can all act as a team.
“We’re looking to work with the risk manager and to get to know him or her. But this needs to be much more than a simple ‘meet and greet’ over a cup of coffee. We’re in a different world. We’re talking about major project management exercises.
“A good starting point, even if it sounds obvious, is to understand the insurance policy and what it will do.”
He also described the importance of good communication in determining the success of recovery. Again, he said the risk manager had an important role to play, but needed to understand the issues in advance of an event.
The AIRMIC annual conference takes place at the Edinburgh Conference Centre June 17-18. The association represents nearly 1,000 risk managers and corporate insurance buyers, including approximately 75% of FTSE 100 companies.
For further information, contact Mark Baylis, Complete Communications, +44 (0) 7775 693994, mark.baylis@airmic.co.uk