Corporate risk and insurance: The case for placement reform

 

New commercial risk research from Mactavish, in association with PwC, reveals serious deficiencies in how corporate insurance is arranged and the role of boards in governing those arrangements. This is leaving companies vulnerable in the event of a large loss and subsequent dispute with their insurer.

 

Based on consultations with over 600 UK companies, the report exposes inadequate disclosure, widespread ignorance of a very challenging insurance law framework, managerial failure to gather relevant information, deeply uncertain policies and a lack of understanding of how large claims are processed.

 

The report reveals disturbing deficiencies in how insurance is arranged. What we see today is a system that has prioritised low transaction costs above reliable insurance policies. Customers, brokers and insurers must all start to invest adequate time into securing appropriate insurance.