Commercial insurers must show clients how they can contribute to business growth as the sector fails to meet client demand, RSA’s head of global risk has said.
Tony Buckle, managing director of Global Risk Solutions at RSA, said there will always be a need to “maintain the status quo” for a clients corporate environment by offering traditional cover but insurers are failing to cover the risks concerning clients most.
“I’m not sure we’re meeting the needs of our commercial clients at the moment. It’s something we need to challenge ourselves and our clients on,” he said.
Speaking on the sidelines of the Association of Insurance and Risk Managers conference in Liverpool, Buckle told Post clients are demanding greater coverage for threats to reputation, cyber, supply chains and other intangibles.
“We’re in a situation now where insurers can start talking about intangible assets and begin to offer cover that protects a clients income when a problem arises.
“Insurance is becoming better at being able to tie cover for intangible assets, such as income flow, to the trigger event which is often insurable.”
The sector needs to position itself in a place where it can start helping clients increase sales and revenue by enabling them to better understand their risks, Buckle said.
He added insures have failed to communicate and promote what the industries capabilities are to clients and that the challenge for the industry and its stakeholders is to get and then maintain access to decision makers in order to communicate the value proposition.
“We’ve allowed ourselves to become subordinated on the corporate agenda and to become an expense item. What you do with an expense items is try to minimise them,” he said.
“The industry needs to transition from the cost expense discussion over into a sales discussion where we become a catalyst for growth for a client.”
Buckle added: “This can only be done if our risk manager and broker partners are willing; able and well connected enough to be speaking to CEOs and chief financial officers about their business and how we can think imaginatively to help them with the broader business risk environment they face.”
Buckles comments follows a similar warning from Airmic CEO Jon Ludlow who said risk managers and insurance buyers are calling for products that cover against these intangible risks but the insurance sector has been slow to react and that underwriters are not yet meeting customer demand.
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