ferma seminar 2014 - 21 september leveraging insurance to optimize risk management

Leveraging

Insurance

to Optimize

Risk Management

BRUSSELS, 20-21 October www.ferma.eu

Agenda

1. Partnership as key driver

2. Risk management in practice: Rule of thumb or

analytics-based decision-making?

3. Insurance program structure:

1. Program sophistication

2. Standard vs non-standard exposures

4. Area of improvement: day-to-day operations

1. Servicing

2. Claims handling

3. IT systems

SEMINAR 2014 2


Partnership

seen as a key driver for efficient insurance

Risk managers continue to invest in relationships reflected by their desire:

for long term agreement or roll-over (50% , an increase of 25% vs 2012)

for improved coordination between teams involved in a claim; in house, brokers, insurers, (37%)

SEMINAR 2014 3

Confirmation of position of coverage as quickly as

reasonably possible (as desired by 43% of respondents)


Risk management in practice:

Rule of thumb or analytics-based decision making?

SEMINAR 2014 4


Insurance arrangements will become ever

more sophisticated

SEMINAR 2014 5

Increased loss prevention activity (43%)

Change in insurance buying pattern (34%) = of these, increase in: - retention (55%) - limits (40%) - lines of cover (52%)

Increased use of captives

93% of respondents are considering changes!



Don’t know 9%

Yes 39% No 52%

33.4% 39.2%

61.4%

41.3%

5.1%

19.6%

Traditional Lines ofCover

Non-traditionalLines of Cover

More important

Identical

Less important

Involvement of captive over the next 2 years

Captive user?

6

Yes


Insurance arrangements will become ever

more sophisticated

SEMINAR 2014 7

Increased loss prevention activity (43%)

Change in insurance buying pattern (34%) = increase in: - retention (55%) - limits (40%) - lines of cover (52%)

Move towards more global programmes with

Master policy and local policies in selected

Countries


93% of respondents are considering changes!

Avec animation, appar Ition dans l’ordre 1/2/3/4

Cerveau infographe à intégrer

Intérer dans les slides qui suivent et de manière esthétique: - Graph ref slide Q7,1 du Ferma lié au 3 - Carte liée au 4)


but still some room for improvement in the

local offering

SEMINAR 2014 8

Brazil, Russia, India, China, France, Malaysia, Argentina, Mexico, USA, Nigeria, Turkey, Japan


Insurance program structure:

Standard VS non-standard exposures

SEMINAR 2014 9

Non-standard coverages for evolving risks

INSURANCE INVESTMENT

Standard coverages for traditional risks

Standard coverages for traditional risks (including property damage)


Insurance program structure:

Standard vs non-standard exposures

Stand-alone cyber coverage

SEMINAR 2014 10

19%

5%

2%

1%

72%

<EUR50 million

EUR50 - 100 million

EUR101 -300 million

˃EUR 300 million

No coverage


Area of improvement: day-to-day operations

Servicing

SEMINAR 2014 11


Area of improvement: day-to-day operations

Large Claims handling

Looking for claims certainty and claims mitigation prior to a loss

Policy wording tests (39%)

+

Learned lessons analysis (36%)

Internal Crisis management

simulations (34%)

SEMINAR 2014 12

Clarity of extent of cover

Anticipation

=

+


Area of improvement: Day-to-day operations

IT systems

Risk and insurance management IT platforms are key for

smooth day-to-day operations.

There is still some way to go before their capabilities are

optimised.

SEMINAR 2014 13

Area of

Improvement

Internal systems

importance rating

Area of improvement External systems

importance rating

Tailor-made & user-

friendly reporting

44% Tailor-made & user-

friendly reporting

37%

Claims management

tools

38% Technical information /

advice / best practices

31%

24/7 access 24% Claims management

tools

29%

ferma seminar 2014 - 21 september leveraging insurance to optimize risk management

Education

euinsurance program

nonstandard coverages

euinsurance arrangements

insurance buyingpattern

program sophistication2

lines of cover

leveraging insurance

eurisk management