StrategicRISK pinned down AXA Commercial Solutions at the AIRMIC conference and queried the insurer on some of the topics that may be on risk managers minds
One of the main issues on the table in Edinburgh was insurers’ use of the reservation of rights pay-out clause. Generally speaking, insurers are supportive of the trade body’s bid to limit the scope of the common clause used to delay the payment of large claims. AIRMIC is pressing insurers for a 90-day agreed timeframe between a claim being notified and any reservation of rights. Commenting on this issue, Peter Clark, regional commercial manager, AXA Corporate Solutions said: ‘We would prefer to deal with companies individually rather than issue a blanket reservation of rights for all companies.’
He argued: ‘There may well be times when reservation of rights is required.' Clark did promise that AXA would not issue a reservation of rights letter until a formal conversation had taken place between a senior manager of AXA Corporate Solutions and the client.
As part of a Europe-wide survey of risk managers attitudes and concerns, StrategicRISK asked what the main concerns were around insurer’s transparency both on underwriting methodology and claims. Many of the 150 risk managers who responded said insurers should share information in a more easily accessible fashion.
From an insurers standpoint, Clark made the point that: ‘We have to be careful on the underwriting side because if we share too much transparency we could be seen as colluding as an industry in terms of putting terms on risk.’
In the area of claims he added: ‘We are very supportive of the current AIRMIC initiative on claims benchmarking and we are working with AIRMIC on that initiative at the moment.’