AIRMIC urges insurers and brokers underwriters to take more notice of clients’ business continuity activities

Insurers and brokers have a key role in incentivising and assisting companies with their business continuity management activities, the AIRMIC conference heard earlier this week, but many are failing to do so.

Alan Staniforth, chair of the AIRMIC business continuity group, told a workshop that there were two key issues: firms that demonstrate well developed business continuity plans should stand to gain better insurance terms; and insurance and brokers could provide expertise and practical assistance to companies who need help with the quality of their business continuity plans.

“It’s a long-standing complaint among risk managers that many underwriters take little or no account of the quality of what firms have done to mitigate their continuity risk,” he said. “Everyone agrees there should be a link, but some insurers fail to highlight how good business continuity management reflects on premiums. That’s not to say precise quantification is required but, rather, there is a need to impress that good business continuity reduces overall risk exposure and, therefore, has a premium benefit.

“Maybe there’s more that we as insurance buyers could be doing, so I hope that we can find an accommodation that enables all parties to get what they want out of the deal. That’s to say fair and sustainable terms for their policies.”

Staniforth urged brokers and underwriters to work with buyers to raise expertise. “Some organisations implement first class business continuity management, but most do not have the skills to do so. Intermediaries in particular could provide advice on this important subject. I’m pleased to say that some brokers are well on the way to providing continuity training tools: something that AIRMIC welcomes and encourages.”

•Date: 8th June 2007 • Region: UK •Type: Article •Topic: BC general
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