On the 14th of November, at the end of the XIX Day of Expectations for the Renewal of Insurance Programmes for 2014, another exclusive Risk Manager’s meeting took place, attended by a group of nearly 30 professionals from various sectors: energy, engineering, distribution, transport and logistics, supply, infrastructure management, heavy industry,
metals, banking and telecommunications, which delved deeper in to information regarding the state of the markets that had been mentioned during the meeting held in the morning.
In terms of the lines addressed, and as a general impression, the risk manager’s own experiences once again point towards a very competitive market with declining rates. However, the Credit Market is seen as being quite different, with a risk environment opposite to that of the general alignment of other areas.
The attendees spoke about what they had seen in relation to the simulation models for catastrophic risk and their evolution and adaptation, demonstrating the companies’ great ability with regards to the improvement of analytical resources. Furthermore, it was also highlighted that clients must be more involved in these advances combining proactivity on their part with increased openness, within reason, to these resources from insurers, ensuring that the all-round quality of the market can make greater strides forward, which would benefit all parties.
They also delved in to M&A policies, which despite not being novel products are actually a big unknown with so few insurers offering them. As a tool for creating value they have created interest among the risk managers who have taken them on board, in spite of the low level of experience surrounding them. As an insurer mechanism they provide a new area to explore with the key being the ability to be able to align them with the operation from the beginning, giving enough time for the accurate study of the required information.
Special attention was given to a debate around catastrophic risk in Spain and on an international level. The attendees shared experiences from their organisations around the management of natural disasters and discussed the action of the Insurance Compensation Committee (CCS) and its role in stabilising the national insurance market in terms of the cost
of material damage programmes. With regards to disaster management and its perceived difficulties, it was agreed that there exists a possible shortlist of key points for risk managers to consider that would be vital in order to prevent problems arising with disaster claims: attendance of an expert on behalf of both the insurer and the CCS, updated and accurate information of the risks stated in the policy and the compliance of the payment terms of the premium with the objective of obtaining coverage on time. None of this is ground breaking or innovative, but is the overriding factor in the origin of the majority of discrepancies between companies and the Committee. In any case it was also mentioned that the risk managers find it at the very least difficult to be flexible enough in resolving these conflicts when they arise.
It is agreed that the role of the Committee is both crucial and a positive influence on the Spanish insurance arena, and in relation to the European initiatives that question this type of representation in state office as opposing free
competition and being negative for policy holders, the position of both AGERS’ and the risk managers who attended the meeting is one of support for the CCS.
Lastly, with the purpose of expanding the analysis in relation to the Insurance Compensation Committee, with a structural focus on finding the areas which risk managers believe can be improved the most and to be able to provide those to the market and the CCS, AGERS Risk Managers Community has decided to create a specific Workgroup to head up a study which will come together and begin its activities shortly.