Uncertainty over how an insurance policy will respond to large claims remains a top concern of Airmic members. A roundtable in December looked at the problems involved and considered how to overcome them. As Mark Baylis reports, the way a risk manager handles a claim is only one part of the answer. Success depends crucially on what happens when the policy is negotiated in the first place.
A lot of claims are paid efficiently and quickly, according to the risk managers present at this roundtable. Until, that is, a big loss comes along - in which case it is often a very different story. These larger events are, of course, the ones that really matter - the point at which insurance becomes a strategic purchase of importance to board members. It is when you really need your policy to perform.
The discussion revolved around identifying the obstacles to genuine contract certainty - and how to overcome them. Airmic deputy chair Chris McGloin pointed out that "insurance is an important plank in the decision-making process." Whether or not a proposed project is insurable may determine whether or not it goes ahead.
Download this paper for a full transcript and analysis of the roundtable debate.