Research published this month by Ace European Group (ACE) shows that leaders in risk management are predicting an increase in their use of multinational insurance programmes. The report comes as part of the group’s ongoing European Risk Briefings series.
A total of 280 risk managers from the UK, Spain, Italy, Germany, France, the Benelux, Nordic countries and Switzerland were polled on their opinions and outlooks. Thirty per cent ‘strongly agreed’ that their usage will rise by 2017, with a further 53 per cent slightly in agreement. Multinational insurances were cited as the primary way to improve compliance and consistency in all markets.
Globalisation has drastically increased the potential exposure to risk for corporates. For businesses which trade and export, a multinational insurance plan can tick all of the boxes at once. International regulations create a large amount of red tape and barriers to market entry.
ACE released a report in 2012 on the issues surrounding the structure of such multinational programmes. It advises on the measures needed to cross jurisdictions and ensure that activities and liabilities in all countries of operation are properly insured against.
Risk managers were asked which types of risk they would build into their policy if they had free reign. The most popular choice was casualty risk at 42 per cent. Professional indemnity, environmental liability and property were all tied for second place, named by 38 per cent of respondents.
The next most stated answer was cybersecurity at 36 per cent. Legislation on cybersecurity for European businesses has been updated this year, with greater monitoring and anticipation of new risks advised. Companies with a strong online presence to reach their international markets need to keep their security measures robust.
A majority of the risk managers who took part in the study emphasised their need for more practical support when dealing with insurance and risk concerns. From your standpoint, do you have all of the information you need to make the best business decision?