JLT spokesman says changes must be made to help the industry cope with economic turmoil
JLT has called for a greater focus on information and strategic relationships within the insurance and risk industry, particularly in the current challenging economic climate.
Chris Tabbitt, head of the property and casualty practice in the Global Risk Solutions division of JLT, said: "Information is king - clients need to ensure that they have good, relevant information and a full analysis of exposures and claims. Brokers must ensure this is presented to Insurers in a clear, accurate and professional manner.
The statement follows the involvement of Jardine Lloyd Thompson (JLT) in the Market Outlook Seminar organised by the Association of Insurance and Risk Managers (AIRMIC) in partnership with insurer AXA Corporate Solutions.
Tabbitt added: "Clients must invest more time with insurers and their brokers to take the relationship on to a more strategic level looking at emerging risks within their business sector. Clients should ensure limits and retentions are aligned to their exposures to avoid unnecessary spend, particularly in a world where some clients' capital expenditure budgets are likely to reduce. At the same time insurers need to be even more transparent with their rating models to help clients focus their risk management activity to unlock insurers discounts and capacity".
During the seminar Chris Tabbitt called for more stability and consistency in the market through initiatives, such as AIRMIC's claims work, and for creativity around placement solutions including more robust long-term and evergreen deals. “Take out the volatility – don’t just sit there at the whim of the market,” he urged.
Chris Tabbitt concluded: "The primary insurance market continues to be very competitive. We share the widespread concern about prospective levels of economic activity and, although logic would suggest that recent insurance industry losses and adverse economic conditions should lead to a hardening in insurance rates during 2009, we have not as yet seen any sustained evidence of a cyclical turn other than perhaps in the Aviation and professional lines sectors and for catastrophe exposed energy risks".