Editors comment – Calling time on casualty business

To paraphrase the late Douglas Adams: “I love renewals (deadlines). I like the whooshing sound they make as they fly by”.

So it’s not really a surprise to hear that the latest AIRMIC Casualty Benchmarking Report found that the greatest worry for UK risk managers when it comes to casualty risks is getting policies issued in a timely fashion. This is their biggest concern – not rate increases, market volatility, lack of capacity, or compliance with regulations and tax requirements.

IPN often hears from industry participants about the problems caused by the last minute approach to implementing global programmes – not the ‘sexy’ underwriting element, but the ‘less sexy’ back office element, actually sorting out premium allocation, local limits and so on. If things are taken up to the wire, there is always the danger that something will be missed, or hurried and mistakes can be made.

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It’s not as if the renewal comes as a surprise. It is a fixed known date. Perhaps everyone needs to start on renewals earlier. The reinsurance industry starts talking about renewals in September at Monte Carlo. Then carries on talking in October at Baden Baden. But it is not just talk that is needed, but getting down to the ‘nitty-gritty’ detail much earlier. In the words of the late, great, Elvis Presley: “A little less conversation a little more action please, All this aggravation ain’t satisfactioning me”.

Lack of time is the modern complaint. Not enough hours in the day. But when it comes to global programmes, more time has to be made available. Claims people are always saying they would like to spend more time with clients before the policy incepts. Loss adjusters equally say it’s easier on everyone when they have a true understanding (derived before an event) of what the insured expects. Remember, a stitch in time…