13 October 2015
Reporter: Becky Butcher

Influence of risk managers is growing, says ACE

More than 71 percent of risk managers in Europe, the Middle East and Africa have more influence that they did three years ago, according to a survey from ACE.

The results of ACE’s survey of 500 companies were detailed in The Changing Role of the Risk Manager, which showed that influence is increasing most significantly in the areas of strategic decision making (78 percent), digital technology and social media (76 percent), and supplier and business partner selection (73 percent).

Some 35 percent of risk managers said their increased influence is driven by technological change, 29 percent by economic volatility and 27 percent by business complexity.

Technology is also a source of worry for many risk managers, who named technology risk as their top concern in the ACE Emerging Risks Barometer 2015.

As the result of dramatic changes in the external environment, risk managers acknowledged the need for a new set of skills and tools. Almost 80 percent believe that today’s risk manager must think like a futurist, while 81 percent agreed that the use of big data and analytics will transform risk management in the future.

The survey also showed risk managers’ concerns about their ability to fulfil the demands of their changing roles. Again, almost 80 percent of respondents said that it is increasingly difficult to keep pace with the range of emerging risks they face, and only one in five felt very confident that they can manage these.

Multinational risk is also a source of concern and 77 percent of respondents have found it challenging to balance the need for centralised risk management with the need for local know-how on the ground.

Andrew Kendrick, president of ACE’s European group, said: “It is encouraging that Europe’s risk managers are gaining greater influence in the boardroom—and right across their organisations. We are also pleased to see that over three-quarters of our respondents agree that a strong tripartite relationship between insurer, broker and insured is vital to help risk managers address their growing challenges.”

“With businesses more exposed than ever before to emerging risks such as cyber and terrorism and increasingly operating multinationally, we look forward to providing risk managers support that goes beyond traditional insurance policies and working with them to develop the multinational insurance programmes they need to ensure compliant, robust cover across multiple territories and jurisdictions.”

More research news
The latest news from Captive Insurance Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
BCC: BMA to produce Bermuda Market Review
12 September 2017 | Hamilton | Reporter: Becky Butcher
A Bermuda Market Review, providing an overview of the captive insurance industry, is set to be released in the next few weeks, revealed Graham Lamb, assistant director of the BMA
Captives must maintain cyber vigilance
13 March 2017 | New Jersey | Reporter: Mark Dugdale
Certain captive insurers and risk retention groups must remain vigilant against cyber threats, despite exemption from the new rules in effect in New York, according to A.M. Best
FERMA: Drop in number of companies using captives
04 October 2016 | St Julians, Malta | Reporter: Becky Butcher
The number of companies using captives has fallen from 39 percent in 2014 to 34 percent in 2016, according to the eighth edition of the European Risk and Insurance Report 2016...
Risk managers rising in corporate ranks, finds FERMA
04 October 2016 | Brussels | Reporter: Mark Dugdale
European risk managers are taking a more strategic role in their companies with increasing access to top management levels and the board, a FERMA survey has found...
Aon sees decrease in cat bond transactions
09 September 2016 | Chicago | Reporter: Becky Butcher
A total of 24 catastrophe bond transactions closed during a 12-month period, ending 30 June this year, with a limit of $5.2 billion, a decrease of $7 billion on the previous period, according to Aon Securities...
Cost and control are top drivers for captives
04 August 2016 | London | Reporter: Becky Butcher
Control and cost savings are the primary drivers for companies with employee benefits in their captive, according to a Willis Towers Watson report...
Bermuda ILS industry creates over 400 jobs in 2015
22 July 2016 | Hamilton, Bermuda | Reporter: Becky Butcher
Bermuda’s ILS and convergence industry generated just shy of 400 jobs by the end of 2015, representing a 30 percent increase over the previous year, according to a new study by the Bermuda BDA...