Mind the gaps: how do insurers respond?

What we find heartening about this research, despite a diminishing level of confidence in the domestic UK economy, is that business leaders are bullish about continuing to deliver topline growth.

What’s more – they are very clear that focusing on international growth and investing in talent and technology are the way to go. Business leaders are confident that foreign markets will deliver growth and that having the right talent and tech will keep them nimble and competitive. This is so, even as political and economic risks increase today, and cyber risk looks set to dominate tomorrow.

As insurers, we understand this focus and we believe it is right.

However, we are concerned that what some might term the more mundane risks are dropping down the agenda. Boardroom risks – corporate, compliance and supply chain – have almost disappeared off the risk radar since our first Business Pulse report in Spring ’17. This change is very surprising at a time when increasing numbers of firms are planning to take their businesses more global.

When companies become more global, their operations will inevitably become more complex. They will have increased exposure to multiple regulatory regimes, different business practices, new business partners and a broader more diverse supply network. All at a time when international regulations are getting tougher and more punitive.

Our research suggests businesses may have underestimated complexity on this scale.

As an insurer with operations in the UK, Europe, Asia and of course North America, our underwriters take these fundamental business risks very seriously.

Armed with these new statistics, we believe that it is more important than ever that we partner with insureds and their brokers to help them understand these risks better. Our hope is that this research will facilitate better dialogue, help our clients improve their management of risk, and support their growth ambitions at home and internationally. We also hope that these findings will lend insight and substance to our own product and service pipeline.

Dave Brosnan, CEO, CNA Hardy

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