Institutional investors are questioning big companies on their insurance purchases, a leading risk manager has told Strategy 2002.
J. Sainsburys head of insurance and risk Paul Howard, speaking on an expert panel, said: "We're being approached by our institutional investors, asking who we're insured with.
"That wouldn't have happened two years ago."
Howard attributed the change to the sudden collapse of Independent Insurance, raising interest in insurers' financial security, and the varying service levels available from insurers.
"It's a hard lesson for commercial clients, that you get what you pay for," he said.
"Security and service are our big issues."
Howard said his relationship with his insurers changed depending on the class of cover.
"We insured our first shop in 1860 and we have a longstanding relationship with our property insurer," he said.
"With liability, we changed insurer last year.
"Price was a factor, but largely it was service."
Howard said it was unlikey Sainsburys would support claims management booths as were available in other supermarkets.
"If we make room for that, we'd lose room for our own goods," he said.
"But if there was a demand from customers - we'd have to see."