Insurance community must prepare clients for business interruption, says Towergate director
The onus is on the insurance community to explain the concept of risk management to clients to prepare for the event of a disaster that will disrupt business.
Paul Dyer, non-executive director of Towergate, said at the final day of the Biba conference: "Brokers have to start sourcing materials on the internet and understand them locally. Start by advising client during normal renewals and enquire about their business continuity plans."
The government's British Standards website details BS25999, the British standard for business continuity management (BCM), provides a guide on how to minimise the risk of disruptions.
The Environment Agency provides useful updates about flood warnings. The agency also works closely with Association of British Insurers (ABI) members to supply information that provides national assessment of likelihood of flooding within the floodplains.
Another useful source is the local council which will have source material for brokers about BCM. The Civil Contingencies Act 2004 (Part 1) establishes a clear set of roles and responsibilities for local councils involved in emergency preparation, which includes putting in place BCM arrangements.
