Europe’s risk managers are being challenged to find innovative and cost-effective solutions to cross-border, complex risks but are not necessarily being given budget increases to do so. These are the findings of this year’s Risk Frontiers European Survey, sponsored by XL Group.
The survey, which gathers views from risk and insurance managers across 12 European countries, reported that individual European risk managers are feeling the pressure brought about by an increasingly complex risk environment coupled with budgetary constraints.
However, it is not all doom and gloom; despite the squeeze, many risk managers report to be optimistic about the attention the risk function is receiving at board level, with many saying this represents a chance to establish risk management as a key corporate function.
As companies are bringing new products to market, developing new business models and seeking growth in emerging markets, the Risk Frontiers survey provides real insight into the challenges risk managers are facing today.
Commenting Jason Harris, Chief Executive, International Property and Casualty, XL Group said: “The UK alone is said to have the potential to double its share of total UK exports to emerging markets including Brazil, Russia, India and China to around 16% by 2030.
“Risk managers across Europe have a crucial role to play in communicating to their boards how the risk environment will become increasingly complex as their reliance on new technologies and on operations outside of Europe increases.
“Complex risks are a reality for companies moving the world forward. This is why the insurance industry must work closely with clients to provide innovative solutions, across territories, at a price that is not prohibitive. This is essential if insurers want to add value as enablers and play an integral part in a business’ operating model.”
The survey highlights that the increased global nature of business has witnessed an increased demand for Global Programs coverage. Respondents said this type of coverage is absolutely critical for the larger corporate sector and increasingly the upper middle market client base as European companies expand further afield in search of new business. This is backed up by Mr. Harris, who says that of the approximate 1,700 Global Programs that XL Group leads; more than thirty percent have at least one policy in Asia and/or Latin America.
The report’s authors asserted that the leading insurers and brokers have expanded their global products/services range recently and continue to do so.
The Risk Frontiers European Survey is being distributed at FERMA in Maastricht, The Netherlands.
To read the full Risk Frontiers Survey 2013 visit our FastFastForward site
Risk Frontiers Survey 2013
About XL Group plc’s Insurance Operations
XL Group plc’s insurance companies offer property, casualty, professional and specialty insurance products globally. Businesses that are moving the world forward choose XL as their partner. To learn more, visit xlgroup.com/insurance.
About XL Group plc
XL Group plc (NYSE:XL), through its subsidiaries, is a global insurance and reinsurance company providing property, casualty and specialty products to industrial, commercial and professional firms, insurance companies and other enterprises throughout the world. XL is the company clients look to for answers to their most complex risks and to help move their world forward. To learn more, visit xlgroup.com
XL Group is the global brand used by XL Group plc’s insurance and reinsurance subsidiaries.