The insurance industry has a role to play as businesses face a rising tide of uninsurable risks, an expert has said.
The recent World Economic Forum (WEF) Global Risks report found that some of the biggest risks facing Australia are actually uninsurable, such as energy price shock and the asset bubble, but Giles Crowley, head of commercial at
Zurich, said that the industry can still help clients.
Browse specialty insurance products from Zurich here
“In our experience companies that have strong governance cultures and risk management frameworks are better able to deal with all forms of risk, even ones that aren’t traditionally insurable, or that might require a change of strategy or market response,” Crowley told Insurance Business.
“But insurers can also help with risk mitigation, risk prevention and alternative capital solutions in some instances.”
Crowley noted that it was “not surprising” to see executives name energy price shock as the biggest risk while doing business in Australia as the prominence of debate around energy policy, prices and supply has seen it move to the front of minds for many businesses.
However, as more risks come to the fore, whether they be insurable or uninsurable, Crowley said that insurers and brokers need to continue to communicate with clients.
“The industry has traditionally been very good at encouraging clients to scan for, manage and mitigate risks, wherever they may be coming from,” Crowley continued. “There’s always more that can be done, that’s why we need to remain vigilant for new and emerging risks, and keep communicating.”
Crowley said that the report, which was released earlier this month, offers brokers a chance to gain a better understanding of their clients and the wider risks they face doing business.
“It’s about understanding the context of the environment that their clients are operating in, and the things that are keeping them up at night,” Crowley said. “Knowing what the priority is for your client will allow you to better tailor your support.”
Related stories:
Zurich highlights importance of environmental sustainability
Zurich to have a new group CRO in 2018
