Crawford's Nicholls warns of the need to ensure insurance policy is strong
The need to maintain cashflow after a big event is an aspect of disaster planning that is easily overlooked, according to Crawford & Company’s vice-president of global markets, Clive Nicholls.
“In the early days of these big events, there’s going to be a big outpouring of cash with nothing much flowing back in,” he told the Airmic conference.
He said that forward planning is crucial and highlighted a number of actions that risk managers can take to ensure a good cashflow outcome. These include checking that your insurance policy provides clarity and certainty, knowing the information that claims managers will require, and putting in place the necessary recording and monitoring systems to ensure that they receive it in a timely fashion.
“If you think through these issues before anything goes wrong, then it will facilitate payments and save you time. It will also reduce the likelihood of confusion with your insurers, which is the last thing you need when there has been a big event,” he said.
“Having a team where each member understands what is required will make it easier. For the risk manager, this could be a once-in-a-lifetime occurrence, so you have to get it right first time.”