Global compliance database details to be unveiled at conference

For several years keeping global insurance programmes legal has been a big headache for members  and for the market as a whole. A new on-line database created for Airmic by the insurance information specialists Axco promises to be a game-changer. Mark Baylis reports.

It is not often that a regulatory database causes a stir, excitement even, but the new tool to be unveiled at the annual conference by Axco and Airmic is something of a breakthrough.

According to member surveys, the legality of global insurance programmes has consistently been one of risk managers’ top concerns for several years. Complying with the many rules around the world can be extremely complex, because there are so many of them and they are liable to change without warning. Even some highly experienced insurance buyers admit that they cannot be 100% sure that their own programmes tick all the boxes.

Those who fall foul of the rules face the prospect of fines, invalid insurance policies and reputational damage. This is especially dangerous if, like many Airmic members, the company is in a highly regulated industry such as chemicals, pharmaceuticals, finance or telecommunications.

Although insurers and brokers have maintained their own databases for many years, these have tended to focus upon their own compliance requirements rather than those of the policyholder. It is, furthermore, an exceedingly onerous task. When Airmic embarked on the database project in 2011, there was wide agreement that this was a challenge best addressed on a market-wide basis.

Airmic has consulted widely on this project with partner organisations and other associations, including FERMA (the European risk management federation) and RIMS (North America). In particular, there has been tremendous support from some firms of broker, who see clearly the value to them and their clients.       

The details of the new database being developed with Axco are being kept under wraps; indeed, some of them are still being finalised as you read this article. The main points, however, are that it is no longer a case of ‘if’ but ‘when’; and it will not cost Airmic members anything to use. 

Members wishing to learn more about the database will have the opportunity to do so on the Wednesday morning of the conference by registering for session S4.