Compliance and Regulation Weigh on Europe’s Risk Managers
Compliance and regulatory issues head the list of challenges in managing a multinational insurance programme, according to the 70 risk managers who attended insurer ACE Group’s recent multinational risk forum held in London.
Panelists representing major European businesses stressed the need for greater investment in enhancing the education and skills of risk management teams, which will allow them to effectively oversee the implementation of multinational risk solutions at a local level. They also called for better use of data and technology and also greater innovation to help manage non-traditional risks.
Risk managers say that emerging markets as a whole are the most challenging regions from a compliance perspective when implementing a multinational programme, with the Middle East and North Africa (MENA) and Asia most in focus.
“Risk managers are increasingly concerned about their businesses’ rising exposure to emerging markets and the growing complexity of regulation,” said Andrew Kendrick, president, ACE European Group. “As an industry we need to get behind our clients and speed the pace of innovation to meet their evolving needs.
Going forward, risk managers say that as they implement new multinational insurance programmes they are most likely to do so for directors’ and officers’ (D&O) liability and on cyber risks. These were also the two areas where risk managers felt insurers could improve their multinational offering: 40% of attendees cited cyber as the top priority for improvement, followed by D&O (28%) and terrorism and political violence (16%).