Business and risk management must avoid falling completely under the spell of the finance department, keynote speaker Anthony Hilton, Financial Editor of the London Evening Standard told attendees at the Institute of Risk Management’s Risk Leaders’ Conference 2011.
European captive domiciles that will implement Solvency II are putting on a brave face about the potential benefits of the new rules for captives but are still unable to say how the critical principle of proportionality will be applied because there is still no formal guidance from Brussels.
To paraphrase Bob Dylan, ‘a hard market’s a-gonna come’. Isn’t it? After the first quarter of 2011 with its string of natural catastrophes, following years of soft market conditions, it is not surprising that buyers fear the worst. But it would appear that perhaps the insurance market is more resilient than was thought.
Trade credit insurance has been on the front page over the last two years for all the wrong reasons. Huge losses in the market, limits culled, prices up, cover withdrawn and governments stepping in with schemes that were too little, too late were the themes. But the market seems to be rapidly recovering across Europe according to Tony Dowding.
Germany is far from out of the economic woods but a recent set of encouraging export numbers and upwardly revised GDP figures means that risk managers within one of Europe’s powerhouses can start to look forward with some optimism again. A marked recovery in the trade credit insurance market is a help too, reports Tony Dowding.
Global programmes are top of the European risk management news agenda currently as buyers, brokers and insurers attempt to find a more effective way of organising these key risk and insurance management tools in the global economy.
Last year, and the year before, saw trade credit insurance on the front pages for all the wrong reasons. Huge losses in the market, limits culled, prices up, cover withdrawn and governments stepping in with schemes that were too little, too late.
There wasn’t a cloud in the sky over Manchester during the recent AIRMIC conference, and the same could be said of the risk management world, judging by some of the talks and discussions taking place over the three days.
The soft market shows no sign of ending, according to experts on the AIRMIC Forum panel, who also questioned the added value that Solvency II will bring to buyers and its effects on captives.
As globalisation continues its march and organisations have to increasingly consider the issues surrounding global insurance programs, a workshop at the AIRMIC conference, entitled ‘International Programme Design focused on Compliance, Cost and Security’, tackled some of the main concerns.