Underwriters could reduce claims if they made risk assessments before they offered cover to companies, says risk management consultant Bruce Kitchener.
Kitchener said too many underwriters accepted a “tick in the box” approach to risk management, particularly in regard to compliance with the Turnbull report.
“It's not just about accepting a brief statement in the annual report and accounts, provided by the auditors that compliance has been or is being achieved,” Kitchener said.
“It gives the opportunity for those bearing a risk to request an inspection or audit for insurance purposes of the business continuity plan, in the same way as other collateral may be inspected.
“It should be a proper assessment of the risks run by an organisation, together with mitigation, or lessening, of those risks and what to do if an event occurs.”