The results from the RIMS business interruption survey 2017
- Published: Wednesday, 26 April 2017 07:42
The RIMS Business Interruption Survey 2017 was developed by members of the RIMS Business Interruption Working Group and provides insights into business interruption insurance trends around the world. The Working Group includes global business interruption experts from leading underwriters, accounting firms and brokerages including Ernst & Young, Marsh, Meaden & Moore and Vericlaim. The group oversaw the survey, providing analysis and case studies to further explain the findings.
Key findings from the survey include:
- By taking control of their data, establishing a team and developing plausible business interruption (BI) figures before losses occur, risk managers can do much to lessen the confusion and frustration common to these claims process.
- 35 percent of risk managers have 12 months as the length of the maximum indemnity period.
- 68 percent of risk managers feel that their maximum indemnity period is adequate.
- Only 17 percent of risk managers were “extremely confident” that their BI values and limits are adequate;
- 40 percent has experienced a BI loss and subsequent claim within the past five years.
- 41 percent of respondents who have had a BI claim in the past five years say it took 6 to 12 months to settle the claim. Only 17 percent of respondents said that the claim was settled in less than 6 months.
- 58 percent of risk managers who have been through a claim said that “difficulty quantifying loss” was the biggest challenge they faced;
- 39 percent of risk managers indicated that their existing BI policy provides either insufficient or no coverage for cyber risk. 10 percent were unsure whether the policy covered cyber risk.
The survey was distributed to RIMS membership via an Internet link and was fielded between September 28th and November 17th, 2016. Nearly 400 RIMS members participated in the survey.The RIMS Business Interruption Survey 2017 is now available in RIMS Risk Knowledge library at www.RIMS.org/riskknowledge.