AIRMIC 2010 conference-highlights
Please click on the links below for our in-depth news and analysis form AIRMIC’s annual conference.
- All rosy in the U.K. insurance buyer’s garden
- AIRMIC bangs the drum
- Soft market set to continue says AIRMIC Forum panel
- Willis CEO urges brokers to embrace transparency
- Captives under pressure
- Reputational risk top concern for AIRMIC members
- Policy wording and compliance the key issues for Global Programmes
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There are more admitted insurance classes, she said, especially on the financial risks side, such as E&O and D&O. This used to be largely on a non-admitted basis but increasingly it is being bought on an admitted basis in many countries, said Ms. Clayton. There is also a move towards greater understanding of local regulations, both by risk managers, and brokers and insurers.
Another trend she noted was central management and control-risk managers want to know what is going on in their business units. Costs are being rationalised and multinational pooling of risks is becoming quite popular, and she said that a number of clients were asking them to look into potential pools for their programmes.
In the past, there was a tendency to have a different insurer for different classes of business, such as property, casualty or marine. Now there is a trend to bring it all together under one insurer—not necessarily under one multi-risks policy, she explained, but all the covers with one insurer. This is particularly important where a claim might go over two classes of insurance, such as, for example, casualty and E&O.
Buyers are also purchasing higher local limits within their global programmes, especially on the casualty side. And finally, a growing trend is for the globalisation of insurers. Previously there was a limited market, but this has now expanded, either through offices or networks of partners.
Ken McKenzie, Head of Dispute Resolutions, Davies Arnold Cooper, then took delegates through the difficulty of achieving the same cover across a variety of jurisdictions. In particular, he looked at some recent case laws, particularly on the reinsurance side, which provide a cautionary example of what can happen when different laws govern primary and reinsurance policies—the same principles apply where you have local and master policies reinsured under a captive global programme.
