Negotiating a mutually beneficial deal is tough at the best of times. But in the current soft market, it is harder than ever for insurers to impress their corporate clients, which very much have the upper hand when it comes to negotiations.
When buying insurance cover, it pays for corporate risk managers to be well informed. The importance of the product they are purchasing means that they must have complete confidence in the organisation providing the coverage.
“We go through a very exhaustive process of review when evaluating and considering our insurers,” says Christopher Mango, vice president and director of corporate risk management at The Hartford Financial Services Group. “We buy a lot of insurance, so we have many carriers— we target some insurers for primary programme leads, some for the middle layers and some we prefer to participate in high excess.”
Top of the agenda for risk managers is having confidence in the financial stability of the insurer. Most use ratings agencies as their primary method of analysing this risk, but some also conduct their own analysis.
Risk managers, The Hartford Financial Services Group, XL, Starr Companies