Hurrell reports progress on contract law, qualifications and global programmes

Large claims remain the number one concern for Airmic members, with half of those surveyed by the association having fallen foul of non-disclosure clauses, said Airmic Chief Executive John Hurrell yesterday. However, reform of Insurance Contract Law has gained the wide support of insurers. The Law Commission will soon present draft legislation that could become law by the next election in 2015, explained Mr Hurrell. "We are now within sight of a solution that we think will be a benefit to our members," he said. In the absence of a change in law, Airmic continues to find ways to neutralise onerous clauses used by insurers to avoid claims. Following on from similar work on reservation of rights, Airmic is issuing guidelines and endorsement wordings for basis clauses at this year's conference.hide"Basis clauses are prevalent, unfair and not well understood," said Mr Hurrell. He advises insurance managers to use such clauses - which can see an insurer avoid liability because of inaccuracies in information provided, even if immaterial to a claim - removed or to use the endorsement as an antidote. Airmic is also launching three publications at this year's conference, including case studies on supply chain failure and a summary of follow up work to its acclaimed Roads to Ruin report. The third publication, produced in conjunction with the Institute of Chartered Secretaries and Administrators, looks at best practices for risk reporting in company reports and accounts. "Standards of risk reporting have deteriorated in recent years and need to improve," said Mr Hurrell. Airmic has also made progress on initiatives to create a professional qualification for risk managers and establish a compliance system for global insurance programmes, Mr Hurrell said. Following a beauty parade held earlier this year, there is now a firm proposal from compliance data provider AXCO Information Services Ltd and Zurich Insurance. "We will work with both in the coming months and I am confident that we will find a solution to have global compliance information available to members for 2014," he said. Risk managers may be disappointed to learn, however, that many leading insurers are yet to throw their weight behind the scheme. The CII has completed its preparations and proposal for a Chartered Risk Manager designation to the Privy Council. Its decision is expected in the next few months, said Mr Hurrell. Feedback from organisations such as the Institute of directors, the Chartered Institute of Management Accountants and Tomorrows Company shows that risk managers are considered best placed and most qualified to bring risk management into governance at a time when risk is rising rapidly up the board agenda, said Mr Hurrell. Risk management is beginning to break the 'glass ceiling' and is now seen as critical to an organisation and an important link between operations and strategy, he said. Addressing a record numbers of delegates at this year's conference in Brighton, Mr Hurrell said that the organisation is able to support members with even more technical activities in its fiftieth year. This year's conference attracted record attendance of 880 delegates, of which 400 are Airmic member risk and insurance managers.

Hurrell reports progress on contract law, qualifications and global programmes

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