Airmic launches ‘insurance efficacy’ research for publication in June

The document, currently being researched by technical director Paul Hopkin, focuses particularly on the period before cover is purchased or renewed. This has been identified as a critical area, from where the vast majority of misunderstandings or failures arise.

The decision to go ahead was taken by the Insurance Steering Group, which is chaired by Airmic chair Chris McGloin. “Without doubt there is a demand from within the membership for this type of guide, reflecting a significant degree of discontent and disappointment at the way policies have responded to large claims,” he said.

The 2011 Thai floods and Japanese tsunami were among recent events that highlighted shortcomings in insurance programmes. 

The latest guide on its own will not, in fact, cover insurance buying in its entirety. To avoid duplication it will dovetail with other Airmic publications already produced that cover specific aspects of insurance. Together they will look at the whole purchasing process, beginning with the insurance needs assessment. In broad terms, the suite of guides will cover five areas:

• The principles of UK insurance law
• Roles and responsibilities
• Contract certainty
• Coverage certainty
• Claims certainty

It will cover contentious areas such as non-disclosure, warranties and basis clauses, which have been blamed for the failure of large claims. The structure of programmes will also come under the spotlight, addressing the issue of unintended gaps in coverage. Although the main emphasis is on the pre-inception phase, there will be a section on best practice in claims handling and the role of loss adjusters.

“This guide will build on the knowledge of the most senior practitioners to provide a comprehensive, practical support document,” said Hopkin. “I hope that risk management professionals new to the role of insurance buying will find it a valuable training tool, whilst those with more experience will find it a useful point of reference.”

Once the guide is complete it will be developed further into an interactive e-publication.

Insurance efficacy – the round table. Click here to read the report as our panel of experts debate the topic.

Paul Hopkin “a valuable training tool”