Despite the increasing uncertainty with regards to the financial hit to industries, Russell Group have modelled the exposure for companies and countries. In the first of these articles, we take a look at the impact on shipping.
The Era of Liability
21 November 2016 | Newsletter
Corporate exposure is on the rise and increasingly connected by geographies and class of business. As you will see when you download the rather nifty infographic attached with this newsletter, there is a disconnect between corporates and insurers with 40 percent of financial institutions insuring only 20% to 30% of their overall exposures. Risk managers complain that insurers are not keeping up with demand for solutions in emerging risk areas. An Airmic survey revealed that reputational risk is the number one worry for risk managers, and yet of those that flagged it as a concern, the vast majority (93%) do not buy cover. Lack of innovation tops the list of concerns about the insurance market. Insurers for their part counter that it is difficult to focus on innovation when they are going through a cycle of soft premiums allied with an increasingly hard claims environment. As we enter what Russell describes as a new era of liability, the (re)insurance market needs to harness the potential of technology, big data and analytics to bring innovative products to market.