Risk Managers’ Views from Both Sides of the Pond Differ
According to a study by London-based insurance broker, Miller Insurance Services, Ltd., U.S. and U.K. risk managers’ concerns are sharply divided, despite both experiencing a soft market and sharing a willingness to retain more of their own risk.
Twenty-four percent of U.S. risk managers and 17% of U.K. risk managers plan to increase their retention levels over the course of the next year in an effort to ride the cycle out, according to the survey Miller conducted at the recent Assn. of Insurance and Risk Managers and Risk & Insurance Management Society Inc.’s conferences held in London and New Orleans, respectively.
The Miller survey, however, fount that beyond this common path, there are significant differences of opinion.
More than half, 58%, of U.K. risk managers think carbon emissions are a boardroom risk consideration, compared with just 7% of U.S. risk managers. In a statement, Miller said that the survey found, “there is uncertainty about the role of insurance to cover this risk, suggesting that further understanding and clarity about this issue would be welcome.”
Another area of differing views is in relation to supply-chain disruption insurance, where 82% of U.K. respondents see it as an important product — twice the proportion of U.S. risk mangers who considered the coverage important.
In addition, despite former New York Attorney General Eliot Spitzer's efforts in launching a high-profile investigation into insurance broking practices, just over a third of U.K. risk managers think his effect has been positive, and over half of U.S. risk managers think that savings made from stopping contingent commission arrangements are not being passed onto the buyer.
Other areas of difference included political risk insurance which 22% of U.S. risk managers think is important, compared with 69% of U.K. risk managers, and trade credit insurance which is highly rated by 49% of U.K. risk managers compared with 12% of U.S. risk managers, according to the study.
Published on July 20, 2007
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