More work needed to make insurance products fit for purpose, says chairman

“Everyone needs to up their game,” says Airmic chairman Chris McGloin referring to the shortcomings in insurance cover available to corporate buyers. “It’s in the interests of insurers, brokers and, of course, risk managers to evolve insurance products that are fit for purpose.”

The clear implication of his comments is that a lot of policies do not respond as a buyer has every reason to expect when it comes to large claims – a subject on which he has been outspoken in the past.

“Members want policies that genuinely mitigate risk, an area where more undoubtedly needs to be done,” he says.

McGloin highlights Basis clauses (see separate story) as an example of a defect that can lurk hidden in insurance contracts and cause buyers to feel badly let down. It is, however, also an area where Airmic has shown itself highly effective in getting change. He sees more such work from the association in the insurance arena – identifying weaknesses and getting agreement from the market to plug the gaps.

One shortcoming that he would like to see addressed is the way Liability excess programmes are structured, which can be inconsistent and lead to uncertainty of coverage. He sees Airmic fulfilling a very similar role in the market to that of its members within their own organisations – acting as a catalyst to bring the different parties together.

He is, however, definitely not in the blame game or intending to single out any one section of the market. “We are all in this together, and we all have a part to play, including our own members,” he says. 

Client-focussed professionalism

In his interview, McGloin develops the concept of “client-focussed professionalism”, which may become an unofficial theme for the year. Essentially it is about members treating colleagues as customers, ensuring that other staff understands the role, expertise and value of the risk manager who, in turn, should be on the same wavelength as them.

His comments represent an extension and refocusing of a long-standing Airmic priority – to help members develop their softer, people skills to supplement their technical expertise.

“To be relevant to our colleagues we have to understand what our internal clients want, understand their priorities and objectives and then identify any risk issues there may be,” he says.  “And they have to understand what Airmic members can do and what we need to be effective in our jobs.”

Data, data, data

He believes that in most large organisations there is the scope to make far better use of data, to assist both insurance purchase and enterprise-wide risk management. As with so much else, he sees risk managers working with others to make things happen when it comes to data, most notably with colleagues, brokers, insurers, customers and suppliers.

“There’s much more we can do with data to understand our global operations and risk associated with them,” he says. “There’s a wealth of information out there, and we need to be innovative in how we use it.”

McGloin, who continues to chair the association’s insurance steering group, intends to work with like-minded members, brokers and insurers to bring about greater understanding of how best to use data. Supply chains are a critical area where things could be greatly improved in this way. “Let’s not forget that we are all suppliers as well as customers,” he says.

New thinking

He sees risk managers as having influential roles within their organisations, not just as technicians but as catalysts for change. “The risk manager is in a really good position to challenge established ways of doing things,” he says. “That is what we should be doing.”

McGloin’s thinking adds up to an extension of what risk managers and insurance buyers do routinely within their organisations. There is nothing too radical in his agenda – ‘evolution’ is one of his favourite words in describing the way forward. It is all, however, consistent with Airmic’s long-term aim of extending the skills, scope and influence of its members in a way that is realistically achievable.