Global Risk Frontiers Survey 2014

In the risk management part we concentrated on the evolving risk landscape, the level of understanding of boards about risk management and what qualities and skills are needed to be an effective manager of risk. We then also asked what education and standards would help elevate the risk management community within the corporate world and further embed the discipline within international companies. The second half of the survey covered the value of risk transfer through insurance, how the market is currently perceived and what the outlook is for pricing and capacity. We also asked risk managers how they would like to see global programmes improved and what could be derived from capital market solutions. Roughly 150 risk managers took part in this year’s survey through a series of regional reports carried out in Europe, the US, the Middle east, Africa, Asia, Australasia and Latin America. Please click here or on the image below to access the survey in pdf format. Once again we would like to thank all of the risk managers that took part in the survey without whose willing cooperation this valuable research could not take place.hideLocal expertise is complemented, and consistent claims service is achieved, through producing a clear, detailed breakdown of instructions of how a claim is handed in every eventuality - from how a claim is notified, received, managed, serviced and reported. Initial discussions with the client are essential to identify expectations of service delivery and of the different methods available to provide the client with the service they require on their preferred terms. For example, the insured may have a preference in the case of managing automobile claims through the network of engineers we have available, or prefer to use a network of their own. Exceptional flexibility is needed to assemble the right solution, from higher property limits, unique terms and conditions, to far reaching customisation of a global programme. As well as our local expertise, we offer our clients access to our global technical expertise, which forms a key part of our claims proposition. AIG's new global operating model means our adjusters specialise in a line of business and handle claims matched to skills and claim severity, resulting in a better experience for our clients. Another issue of key importance is managing and maintaining a strong relationship with our client both locally and globally and we achieve this through our dedicated Claims Account Relationship Managers. Other client requirements for a global insurance programme are a consistent claims service, clear data sharing and efficient and speedy processing of payments. Managing the Programme Close collaboration and clear communication is essential to support the claims handling process in the local issuing offices. The 'Producing' office, where the master programme is designed, documents clear protocols on any client specific requirements or 'special instructions' which are communicated through an internal 'Bulletin' available through the global intranet. This ensures every claims adjuster across the 'issuing' offices has a direct link to the specific procedures to follow to support the client's service level requirements expectations. AIG's global claims payouts in 2013 were $25.6bn - that's $100m per business day. Insureds demand speedy payment processing and we are proactively increasing our commitment for fast interim payments. For example, in the event of a major claim we confirm coverage under the policy as quickly as possible and provide the policyholder with immediate working funds of 50% of our share of the agreed estimate within seven days for the property damage/repairs, clean-up process and any extra expense and/or increased cost of working. Understanding an insured's reporting requirements from the outset of designing a global programme is essential. Providing clear reporting in a connected and co-ordinated way can be a challenge across countries where there may different systems and technology. Summary In summary, although there are many challenges to be faced with handling claims within a global insurance programme, the most important element is for detailed discussions to take place with the client at the outset. Determining the best solution for the client to produce the most appropriate policies supported by clear and comprehensive protocols which are clearly communicated enables the most efficient claims handling process service to be provided.

Global Risk Frontiers Survey 2014

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