Airmic expands offering for new world of risk

Airmic is expanding its support for members as the fast-changing risk landscape makes new demands on risk management and insurance, according to John Ludlow, the association’s chief executive. The future risk environment will require greater levels of collaboration within organisations, and between buyers, insurers and brokers, he stressed. Speaking to CRE ahead of Airmic’s annual conference in Harrogate, Mr Ludlow said the association continues to expand. It is increasingly offering technical support and training in new areas such as people risk and cyber, as well as enterprise risk management and strategic risk. Following on from last year’s conference theme – The Future is Now – Airmic’s 2019 annual get-together is titled New World, New Solutions. It will explore how risk managers can help their businesses manage the fast-changing risk landscape. “The businesses environment feels less predictable, more dynamic,” said Mr Ludlow. “There is huge growth in the value of companies, and the world is more connected and fast moving, while macro trends connect with businesses much more quickly, driving opportunity and change,” he said. “This year’s conference is about getting that message across. We are in a new world – one that is increasingly dynamic and unpredictable. But by applying the principles of risk and insurance management, risk managers can help their organisations get on the front foot and embrace technology and change,” he said. Increasingly, Airmic will focus its technical agenda and events to support members as their roles expand. This will see Airmic increase its output on strategic and intangible risks – including cyber, reputation and people – as well as sustainability. For example, the association plans an event on managing people risk later this year and will soon include the topic in its academy programme. “There are lots of pressures and unintended consequences of technology on people risk. This is likely to be the next domain of risk. We already see growing societal tensions today, and corporations will need to grow their capabilities in areas of people risk, like benefits, stress, inclusion and diversity. We already see growing protests in countries like France, and there is likely to be more of this coming,” said Mr Ludlow. The new world of risk will also require much greater levels of collaboration, in particular between insurers, brokers and risk managers, according to Mr Ludlow. Commercial pressures can make the relationship between buyers and sellers of insurance “transactional”, with negotiations focusing too much on price and not enough on the solution, he explained. “We need to work together collaboratively on new solutions. The old silos in business need to go, and the silos between insured, insurer and broker need to come down. There is sometimes a feeling that we do not all sit at the same table,” said Mr Ludlow. “We need to become more strategically aligned behind a common aim, to understand the challenges together and develop solutions together. If we take a mature approach to risk management, we can help businesses become more agile, adaptive and resilient to the future environment. That is not where we are today in the market,” he added. The insurance industry is looking at ways to help businesses deal with increased unpredictability, catering for broader risk management needs, acknowledged Mr Ludlow. For example, insurers are developing their risk engineering capabilities and increasingly offering risk management services and advice via third party or ‘white label’ providers, he said. The industry has also moved to differentiate between bespoke cover for complex risk and standardised commoditised products, where it can drive out frictional cost. While this is welcome, insurers should clearly signal which offering they are selling, said Mr Ludlow. The insurance industry is also making greater use of technology, as it looks to drive out cost and offer services, explained Mr Ludlow. Acknowledging this trend, Airmic is hosting a technology hub in Harrogate. It will showcase a range of technologies with insurance and risk management applications. “Technology is a great enabler and disruptor, and it can help drive out cost. Ultimately, as insurers use more technology it will impact product and services. So risk managers need to be aware of that change, while some may even want to embrace these technologies and bring them into their own organisations. Risk managers will need to get tech literate and embrace technology,” said Mr Ludlow. Airmic has increased its membership again this year. It now stands well in excess of 1,300. The next 12 months will see more events in the calendar and further technical output, while the association continues to build its own resources and capabilities. “Our overall strategy is three-pronged. We aim to grow and increase membership engagement, increase value and diversity of our partners and, thirdly, grow the capacity of the Airmic team to meet the growing needs of the members. We are making good progress on all fronts,” said Mr Ludlow. Airmic’s technical output continues to be popular. Its papers have been downloaded some 9,500 times. Airmic will publish bespoke reports on D&O, intangible risk, data analytics and political risk at its conference this year. It is also planning more weighty reports on supply chain risk, broker remuneration and the recently updated UK corporate governance code. Airmic already offers a fast-track programme for new risk managers, a business excellence programme for risk managers looking to take on wider business skills, and a leadership programme for the most experienced risk managers. All of which have seen an increase in attendance and participation, according to Mr Ludlow. “We have plans on how we can improve and prepare our membership for the new world. We will continue to cement our position in enterprise risk management and build on our leading position as an association for insurance and risk managers,” he concluded.

Airmic expands offering for new world of risk

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