Narim members look to the future

Dutch risk and insurance management association Narim held another excellent annual conference May 24-25 and, in typical Dutch fashion, tackled the big issues of the day head-on. The theme was ‘Transform to perform’ and the association president Albert van Haastrecht was happy with the focus. “Topics such as the search for talent, attracting young people, insurers’ product development and sustainability were all discussed,” he said. Van Haastrecht stressed that the basic idea was provoke discussion and ideas not come up with definitive solutions in neat packages. “Everyone gives their own interpretation to the transform to perform theme. Nor should we expect a comprehensive answer. There is more food for thought and points of discussion that we can work with,” he said. The transform to perform’ theme is central to NARIM's activities and communications throughout the year not just for the congress, said Van Haastrecht. “For example, in the coming period we will be paying attention to the role of ESG and the insurability of initiatives in the area of sustainability in particular. We want insurers to insure them in an acceptable manner. What do insurers expect from us and what are the consequences of this and what do we expect from insurers? We will give an introduction to this at the Dutch association of corporate insurers (VNAB) congress and are working with the association to investigate insurability and how we can keep it up to standard,” added Van Haastrecht. This is a hot topic in the Netherlands and across Europe. Most Narim members are insurance managers by training and experience, but, as with their peers across Europe, the are increasingly finding themselves carrying out an ever-expanding role in broader risk management. ESG is on the agenda for all Dutch companies and so risk and insurance managers are getting involved, not least because of the potentially huge reputational damage that can be inflicted if what is said in the annual report doesn’t turn out to be true. Shell may have won its case for now for supposedly misleading investors and other stakeholders about its green credentials. But the drive against greenwashing will not stop here. The EU – and the EU parliament in particular - is driving the ESG agenda with gusto despite rising opposition among European business groups such as BusinessEurope that appears to be gaining an ear at the highest level and leading to a dilution of the most ambitious proposals as with the Corporate Sustainability Reporting Directive (CSRD). But any risk manager worth their salt needs to make sure that their employer is not breaching human rights or destroying the environment in the pursuit of profit, a responsibility that Narim members are clearly aware of. The Covid-19 pandemic obviously raised the profile of risk and insurance management and our readers individually and collectively to a new level as affirmed during the roundtable we hosted with leading Narim members at their recent annual conference. But the ESG wave is one to ride at a higher level. The two big risks that risk managers in the Netherlands and the rest of Europe identify when asked are climate change and the battle for talent. Regardless of what the EU does in terms of Directives, any forward looking company in Europe needs to take this seriously and ideally act before the rules come into place because they are convinced that it makes good business – as well as reputational – sense. The creation of pan-European and even worldwide recognised taxonomy and consistent and transparent ESG ratings will help in this regard immensely. This will also presumably help with the rapidly evolving relationship with insurers when it comes to the ESG agenda and green transition. As the Narim members agreed, the adoption of ESG based principles during renewal negotiations is haphazard at best. Consistency and transparency is needed in this field to ensure that corporates and the insurers themselves are rewarded - or otherwise - for their ESG performance on an equitable basis. Likewise Dutch risk managers are frustrated along with their peers across Europe about the slow progress being made by the insurers to come up with adequate risk transfer solutions for the innovative new products needed to support the green transition – mass timber for example. ESG credentials are also important in the battle for talent. As the Dutch risk managers agreed, if their corporations are to attract and retain the best talent they need to make sure that they adopt the highest possible ethical standards to attract and retain the future leaders. They also need to embrace the digital future and all the opportunities that come with that if properly adopted for the right reasons. Technology – in its various forms - has to be about improving the business model to free up talent to improve products and services and make sure they are delivered in the way that customers want them. It is not about simply reducing headcount and costs and dehumanising the business. The theme of this year’s Narim congress was ‘transform to perform’ not ‘transform to cut costs‘. The insurance market needs to take note of this big difference if it is to support the wider economy in the transformation that lies ahead.

Narim members look to the future

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