Loss prevention becomes key focus for Europe’s insurance managers as recession drags on
Stephanie Augustin, Head of Marketing (Management and Strategy) at AXA Corporate Solutions, reported the insurance element of this study that was published this week at the Ferma seminar in Versailles, France.
Ms Augustin said that the majority of the 809 risk and insurance managers who took part in the latest study plan to bolster their loss prevention activity rather than increase their use of insurance.
Another significant response by the risk managers to the tough operating environment is an increased use of captives to help manage their risks. This was particularly noticeable among UK risk managers who took part in the study.
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Another important reaction is a desire to accelerate the claims settlement process to improve cash flow.
Ms Augustin noted that compared with the last survey that was published in 2010 risk managers are taking a more long-term view of the financial crisis. She also pointed out that the risk management community has become more proactive. “Very few will do nothing,” she said.
The big message for the insurers is that they need to improve the efficiency of the claims settlement process.
This came as no surprise as there has been increased talk in recent times among risk and insurance managers across Europe about the apparent rising willingness of some insurers to delay and debate big claims rather than swiftly settle.
Interestingly, a high proportion of the respondents to this survey said that one reason why they need to see a more efficient payment of claims payments is to protect market share and brand reputation as well as the typical need to generate cash.
The second and third most important areas for improvement from insurers were more tailored wordings and innovative new coverage at 36% and 30% respectively.
This again comes as little surprise because the need for swifter and more innovative insurance cover, in particular for emerging risk, has been a big theme over the last couple of years.
Interestingly capacity and expansion of territorial coverage are not seen as big priorities for improvement, which perhaps reflects some of the effort that the insurers and brokers have put into the extension of their global footprint in recent times.
Ms Augustin said: “The top answer reminds us that the ultimate purpose of insurance is claims settlement. More than ever insureds need to be efficiently supported in times of crisis following claims.”