Peter Johnson
Asia Leader, Marsh Advisory
Does your enterprise risk management approach align your organisational strategies with insurance activities?
Facing increasingly complex, interconnected, and unpredictable risks in Asia and beyond, companies that fail to align their risk profiles with their organisational strategies and insurance activities, as part of their overall enterprise risk management (ERM), may be more vulnerable to strategic, operational, technological, regulatory and financial impacts when a risk event occurs.
A robust risk analysis should not only uncover key risks as part of an organisation-wide enterprise risk assessment, but it must also be able to classify the risks as insurable or non-insurable so that the right follow-up actions can be calibrated with strategies.
Marsh’s Risk Insurability Analysis is an effort that provides such visibility and appropriate recommendations for your company to mitigate and transfer risks.
The analysis also reviews and ensures the adequacy of your existing insurance programs to help you avoid overinsurance — excess expenditure on insurance coverage — and underinsurance — a gap in insurance coverage that exposes your company to potential significant financial losses from adverse events and heightened by trends such as inflation, rising interest rates, and supply chain disruptions.
How the Risk Insurability Analysis works
Marsh’s Risk Insurability Analysis synergises your enterprise risk management and insurance management by helping you to:
- Identify and quantify key risk profiles in a structured manner.
- Assess the insurability of your risk exposures.
- Identify and close your insurance coverage gaps.
- Optimise your risk mitigation efforts.
Understanding that speed and efficiency is essential, Marsh leverages its combined risk and insurance advisory expertise and resources in conducting the Risk Insurability Analysis for your company, with the steps and key outcomes below:
Figure 1 - Risk Insurability Analysis
How are insurable and non-insurable risks treated?
Why Marsh?
Conducted by Marsh Advisory Strategic Risk Consulting team, the Risk Insurability Analysis takes into consideration your risk appetite and tolerance, as well an evaluation of your existing insurance programs, to ensure that recommendations are tailored to your business. Our integrated approach helps your risk managers and business leaders enhance your company’s existing insurance programs and risk mitigation strategies.
Marsh Advisory is dedicated to providing best-in-class services to optimise the effectiveness and cost-efficiencies of your ERM and insurance strategies amid an evolving risk landscape.
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