In the post-Spitzer world no risk is currently more relevant than reputational risk
Large brokers like Marsh and Aon have found their reputations, that took years to build, called into question. It is such a sensitive issue that Marsh et al refused to comment on how their images have taken a pounding (page 6).
At the peak of the hard market, the initials of directors' and officers' insurance might have stood for doubling and overpriced. Now they mean dwindling and on-the-slide (page 22) as many FTSE companies may see a decrease of up to 50% in their D&O cover this year.
The once attractive captive option has also waned. A mixture of cost and bureaucracy means companies are playing safe with the purchase of cover through more traditional means (page 27).
On the much reported risk issue of terrorism, hysteria has cooled since 2003, when tanks surrounded Heathrow Airport to deal with an "imminent threat". But a number of experts say that we are deluded if we believe the danger is in the past (page 11).
And risk management sometimes reveals that insurance is not enough.
A research facility can simulate accidents to show how to prevent costs (page 16). Rather obvious, but it's interesting to see the savings that can be made by using the facility and the extreme costs involved when basic advice is ignored.
On a positive note, a series of reports over the last few years has confirmed that risk management as a discipline is growing in both scope and perceived value.
The latest describes how the profile of the risk manager has risen throughout business, including at board level, with a higher degree of risk analysis than ever before (page 31).
It is beneficial to everyone in insurance for this trend to continue.
