The campaign to put risk management and insurance firmly on boardroom agendas has made significant advances over the past 12 months, according Association of Insurance and Risk Managers in Industry and Commerce (AIRMIC) chief executive, John Hurrell.
Addressing delegates on the opening day of the association’s annual conference in Liverpool, UK, he said risk managers and the wider market are making strides in gaining recognition for their professions.
Among several examples, Hurrell cited the long-awaited guidance on risk management and internal controls from the Financial Reporting Council which calls on directors to take greater responsibility for risk management.
Hurrell described the guidance, on which AIRMIC was consulted, as “the perfect opportunity for risk managers to step up and support their boards”.
He also noted the work AIRMIC has being doing with corporate governance think tank, Tomorrow’s Company, urging businesses to set up a dedicated risk leadership function that reports directly to the board.
Hurrell said AIRMIC will be using its 2015 conference to unveil further work designed to educate business leaders and help risk managers raise the profile of risk and insurance.
These include a practical road map for risk managers on how to achieve resilience and support their boards; a guide to understanding the importance of business-critical insurance; and a report for members on the hot topic of reputational risk.
Hurrell also used his address to praise the Law Commission for successfully getting the 2015 Insurance Act through parliament, one of the most significant legal developments in recent years.
He urged insurance buyers to consider amending contract wordings to achieve its benefits ahead of the August 2016 implementation date.
Hurrell continued: “We have been working with our friends at Herbert Smith Freehills to issue a clause which would effectively replicate the main policyholder advantages of the new law. These are available now.”
The new law was passed in February and represents fundamental reform of the laws governing commercial insurance, including crucial safeguards for policyholders. AIRMIC has been campaigning for change for years.
Hurrell also announced significant progress in the journey to achieving official recognition for risk and insurance managers: “I'm delighted to say that a proposal to create the new title of chartered insurance risk manager has progressed through Privy Council stage and is now going for approval to the Chartered Insurance Institute’s (CII's) annual general meeting next month."
"This would entitle current and future CII members with chartered status to opt for the new title. We hope this proposal is able to jump this very final hurdle.”
Concluding his speech, Hurrell said that AIRMIC, its members and the wider market really can and are contributing to progress.
“This is a tremendous time for our profession…Between us all we will continue to make a difference – and that’s a promise.”
