An AIRMIC turn of year snapshot survey shows that there is growing recognition of the value of professional risk management within UK businesses.

An AIRMIC turn of year snapshot survey shows that there is growing recognition of the value of professional risk management within UK businesses. Initial trends include:

  • more UK companies deciding to increase self-insurance and risk retention measures within their risk management programmes
  • a fall in insurers' service levels in the past two years; less than a third of risk managers expect things to improve
  • a move towards increased use of external consultants, with a bias towards fee-based contracts and payments
  • expansion of the risk manager's role, reflected in organisations' increased number of risk management initiatives; four out of five risk managers reported increased activity, and even more expected the number of such initiatives to grow
  • according to more than a quarter of respondents, the number of innovative products offered by service providers (brokers, consultants and insurers) increased in the last two years; but, tellingly, 50% of risk managers are expecting and hoping for even more innovation in the next two years.

    "Although our results have yet to be fully analysed, it is clear that the role of the risk manager in the UK today is growing and continuing to evolve in difficult insurance market circumstances," said AIRMIC chairman Alan Fleming (above). "Faced with a market offering poorer service, and signs that premiums are set to rise, decision-makers in companies are looking elsewhere to resolve their risk concerns and are increasingly turning to their inhouse risk management, supported by external services, for solutions."

    "From our research, around 60% of our members appear to be reporting significant growth in the scope and nature of their work-role, with very, very few expecting their responsibilities to decrease in the future," Mr. Fleming added.

    AIRMIC believes that the introduction last year of the Turnbull requirements and the need to demonstrate good corporate governance to shareholders and customers provide additional drivers for the trends. Full details of AIRMIC's latest research will be published in March. Delegates booking a place at the AIRMIC conference (June 4-6, Birmingham International Convention Centre) and all exhibitors/sponsors will receive advance copies of the published survey results. Non-AIRMIC members can buy copies at the conference.

    Contact AIRMIC for conference bookings on 020 7480 7610.

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