Come on let’s be honest, risk and insurance management can seem so dull to our colleagues outside of the risk world.
How do we make insurance more interesting and, more importantly, how do we make it strategically relevant within an organisation?
We at JLT have been thinking about this conundrum for a while. In partnership with Airmic and following a comprehensive survey of a large cross-section of its members, conducted by thought leadership specialists Longitude, we conclude that, generally, risk and insurance managers find it challenging to articulate the value and strategic importance of insurance.
The fact is, insurance can be a strategic business enabler that can protect a company from unexpected and unfunded volatility; and it can also help facilitate exports, merger and acquisition (M&A) deals and capex. It can even underpin the survival of a company in the settlement of large claims.
This study talks about how risk managers can articulate this value. One way to do this effectively is to translate boring insurance jargon into corporate language that is understood by the board, executive management, business units and joint-venture partners. Risk managers need to be ‘multilingual’ in corporate speak. This will help highlight the strategic value of insurance and the benefits on the organisations’ risk financing approach.
We believe that having the right conversations with the right stakeholders, the value and importance of risk management will be recognised beyond buying insurance policies.