Airmic to launch basis clause, risk reporting standards, and supply chain failure reports, as well as a guide to resilence

John Hurrell

Airmic will be launching a number of reports at its annual conference, the association’s CEO John Hurrell announced in his opening speech today.

The association has produced a guide on basis clauses – a clause that states that insurance buyer must provide accurate information. Any minor error will enable an insurer to avoid liability under policy.

Hurrell said: “We believe that basis clauses are prevalent in the market, but they are unfair and not well understood in the market. So we’ve worked with Herbert Smith Freehills on this guide, which will be launching at conference.”

He added: “Speak to your brokers, your insurers to make sure you don’t have any basis clauses anywhere in your programme.”

Hurrell also announced that the association will be launching three major publications, including one on risk reporting standards produced jointly with Institute of Chartered Secretaries and Administrators (ICSA).

He said: “Risk reporting in company annual reports has deteriorated in the last two or three years and standards need to improve.

“We have taken what we regard as best practice in the FTSE 250 and we published that with recommendations of what we think annual reports should include. We hope that this process, particularly through the c, could influence behaviour in risk management and therefore influence practice for the better.”

Over the three-day conference, the association will also be launching a report on supply chain failures and the follow up to Roads to Ruin, Roads to Resilience, looking at how companies have avoided major risks.