European insurance companies ignoring business resilience investments when setting premiums

More than 50 percent of European insurance companies appear to be ignoring the physical environment in which IT infrastructure is housed when setting premiums, according to research commissioned by Global Switch. Overlooking this fundamental factor means insurers may be setting premiums incorrectly.

The research was conducted by Vanson Bourne, and questioned enterprises with 1000 or more employees across Europe about various elements of their business continuity plans, including aspects of their insurance and premiums.

Only 48 percent of UK businesses surveyed believe that the physical resiliency of their IT infrastructure environment is of importance to their insurer. This leaves a worrying 52 percent of UK insurance firms either not contemplating this when setting premiums or simply not highlighting its importance to customers.

Of other European countries, France was the only exception. Here IT infrastructure resiliency appears to be a standard component of any business insurance policy - 74 percent of French businesses were conscious that this was an important factor for insurers when setting their premiums.

•Date: 6th Dec 2005 • Region: UK / W.Europe • Type: Article •Topic: BC general
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