UK risk managers are struggling to purchase cover for some of their biggest exposure concerns, a survey of Association of Insurance and Risk Managers in Industry and Commerce (AIRMIC) members has revealed.
The results suggest that the insurance market is not keeping up with demand for solutions in emerging areas.
The survey revealed that reputational risk is the number one worry for risk managers and, of those that flagged it as a concern, the vast majority (93 percent) do not buy cover, with lack of availability or inadequate cover given as the main reasons.
Cyber risk features twice in the top six concerns, and approximately two thirds of UK risk managers said they are unable to buy insurance for the risks of loss or theft of personal data and business interruption, largely because of inadequate cover and high costs.
The only risks in the top six with substantial insurance availability were catastrophe events and public liability.
The survey of AIRMIC members, who buy approximately £5 billion of insurance a year, was conducted in May, and provides a snapshot of the views and concerns of risk managers on insurance and risk-related topics.
Lack of innovation topped the list of concerns about the insurance market, with 60 percent marking it in their top three. Broker conflicts of interest was also a significant worry (41 percent) along with multi-national insurance programme compliance (31 percent).
John Hurrell, AIRMIC chief executive, commented: “These results show that it’s more important than ever that insurers, risk managers and brokers work together to find risk transfer options fit for 21st century businesses. Creating relevant products is no easy task but will benefit everyone in the market, underwriters, brokers and policyholders alike.”
He added: “We are, however, delighted to see that risk management is growing in status and that the vital work of risk professionals is being recognised. This is good for the profession but also good for business.”
