Unbundling Risk Control: A New Approach for Managing Property Risks

摘要

When a diversified European company renewed its global property insurance program, its goal was to improve coverage and reduce costs by presenting the best possible risk portfolio to potential insurers. By unbundling risk control from its insurers, the company was able to obtain better insurance coverage and terms while saving $4 million on premiums. The resulting solution was tailored to the company's own risk tolerance and financial requirements rather than the underwriting guidelines of its insurers. "Information is king," says James J. Marsh, CEO of Global Risk Consultants (GRC), a risk control firm based in Clark, N.J. "If companies don't have a full overview of their risks and, more important, a plan of attack to manage those risks, they are going somewhat unprepared into the market." Insurers also welcome this type of proactive risk management because it helps them underwrite the coverage based on hard information about actual conditions at each location, rather than having to rely on assumptions and worst-case scenarios.