Insurers have told of the importance of a having plans in place to protect reputation
Insurers are urging risk managers to ensure they have a tested crisis plan in place to protect tangible and intangible assets, StrategicRISK heard at Airmic 2018, held in Liverpool this week.
Chris Wright, lead property underwriter at Travelers, and Charlie Matheson, who oversees kidnap and ransom underwriting and crisis response solutions for XL Catlin, both said evidence of fully-tested crisis planning would lower premium prices.
And this includes a full media plan known across the company for how to respond.
“How you handle a crisis has ramifications for people, property and reputation as well,” said Matheson. “When we are looking at any of these risks we want our clients to be prepared.”
He continued: “We want them to have thought about what could happen and have the right processes in place, but we are keen to help clients with that.”
“Then when we come to underwriting and we are asking about what security they have around their people, their property and their cyber networks the more that they can show us that they are well prepared then that will always be reflected in the premiums,” Matheson added.
Speaking after a Travelers workshop at the Airmic conference on how to manage a natural disaster, such as last year’s Hurricane Harvey, Wright listed some priorities for crisis-hit firms following such a catastrophe.
He said: “It’s important to let the insurers know immediately about a potential claim. The broker can assist you in navigating the policy coverage and best way to present the claim to the insurer.
“Regarding on how any policy may respond depends on the personal cover purchased and the claims circumstances.”
Post-catastrophe he had further advice to risk managers to be aware that the risk profile of the organisation will have completely changed.
He also advised there should still be a full social media plan in place known by all staff members to prevent reputational damage.
“It’s important to remember that insurance is only one aspect of the total risk management solution for your business when responding to a crisis,” he added.