A critical time for failing insurances
Insurance buying has never been so complicated or so risky, according to a new report by Mactavish/PwC, Corporate Risk & Insurance: The Case for Placement Reform.
Mactavish/PwC’s report includes a warning to even the largest of the UK’s businesses that in its current state commercial insurance is not fit for purpose. Claims are increasingly often disputed and too often not paid.
It identifies the reasons for this as being failings by both the insurance industry and by Boardrooms. Things that have given rise to the failure of insurance to meet its objectives include alleged non-disclosure of material information and changes in risk during the policy period; the result is increasing insurance claims rejections and disputes, costing policyholders devastating financial and reputational losses.
The report also offers a blueprint of “Reforms and Recommendations” for more effective buying of commercial insurance and offers seven specific reforms to both the buyer and the insurance industry, to improve the buying experience, enhance the reliability and so the value for money.
So what does this mean for CEOs, FDs and Managing Partners of SMEs who ‘invest’ in costly annual commercial insurance premiums? The report helps busy CEOs, FDs and Managing Partners of SMEs understand what the implications of insurance buying actually mean, in practice.
In our experience we believe there is a direct benefit from knowing how to value the business’s insurance programme by measurements other than its price. That is no measurement at all.
For a full copy of the report please click here
Tags: commercial insurance, Commercial Insurance Advice, Corporate Risk & Insurance, Insurance Claims Rejections, Insurance Implications, Recommendations, Reforms
