Large global firms rely on brokers
Large multinational companies, which operate in an increasingly complex global business environment, may never be able to do without the services of a global risk specialist, says Nathan Skinner, associate editor of Insurance Times' sister title, Strategic Risk.
In response to claims that recession hit companies are considering cutting out brokers and bringing more services in-house to save cash, Skinner continued: "Mainly this is because global companies operate in so many different jurisdictions that keeping up with all the different compliance obligations can be a serious headache.
"Only the most adept internal risk management department will be able to keep on top of this without any help from the outside. The best global brokers should be able to provide expertise on the nuances of insurance and how it can be legally deployed all over the world.
"If corporate risk managers are dedicated solely to insurance they may be able to do this themselves. However, broadly speaking, as a breed risk managers rarely feel comfortable pigeonholed into the role of insurance buyer.
"They join corporations to take part in the business itself. If they were only interested in insurance they would probably be brokers themselves."
For more, see: Big firms want to bypass brokers in bid to save fees & Europeans join the debate as anti-broker feeling builds
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