Delegates mull as yet unknown risks

The future of risk will be a top concern for delegates at this year’s AIRMIC conference according to Charlie Kitson, head of client engagement, UK for AIG.

“Given the ‘Emerging Risks’ theme of the conference I expect risk managers will be keen to hear about new techniques in managing risk that may help them deal with as yet unknown risks,” he said.

Although cost will continue to be an influencing driver for any business, Kitson notes that in AIG’s experience, risk managers weigh the service proposition and delivery against cost.

“They are looking for value. This will include confidence in policies being issued around the world; claims being managed efficiently; and premiums.”

He said that insurance companies function in a very competitive environment when it comes to adapting to meet customers’ needs.

“We are very focussed on delivering to customer needs which means creating opportunities to better understand our customers,” he said. “For example we run claims scenario workshops. These not only reassure customers about what is covered but can also expose needs that need further consideration. It is one way of maintaining a constructive dialogue and building confident long term relationships.”

Kitson believes risk managers are keen to build long term strategic partnerships and are less keen on going to the market every year to negotiate new contracts that cover risks.

“Of course they are keen to contain costs but they also want reliable provider relationships with whom they can have an effective dialogue around understanding and meeting their needs,” he said.

He added that over the years there has been a noticeable shift away from being simply an insurance buyer to exerting a greater degree of diligence in assessing, understanding and articulating the risks faced by their organisations.

“There is now more top down demand from board level. Woe betide the risk manager who is not on top his game or keeps any critical information from his board.”