4 BROKERTALK
” Talk “
The recent announcement by Lord Young that the new government is looking to reduce the burden of health and safety regulation on small business is worrying for a
number of reasons. Lord Young is a former Conservative Minister who has been asked by Prime Minister David Cameron to lead a Whitehall-wide review of health and safety laws, following some claiming that the UK has turned into a nanny state.
As a nation we are a world leader in the reduction of workplace accidents and deaths and while there are the tabloid examples of “elf ’n safety” nonsense, it is vital that we do not forget the huge positive impact that risk management and health and safety legislation has had.
My very real concern is that this announcement may be another excuse for brokers to ignore the importance of risk management for their clients. One area, for example, that should be top of the broker’s agenda is business continuity or disaster recovery. BIBA has been very vocal in this arena and for that they should be commended, but I still little evidence of brokers promoting solutions.
Even if brokers are reluctant to talk to clients about health and safety risk management for fear of opening up a hornet’s nest of potential costs, there is absolute synergy with the insurance policy in promoting a business continuity solution.
For regulated businesses such as accountants, solicitors and of course, insurance brokers, a business continuity plan is a must. The facts are that 8 out of 10 businesses will fail in the event of a major loss yet if they have good business continuity plans the chances of long term survival is signifi cantly improved.
A plan, however, is merely a piece of paper, and is usually locked in the offi ce and is invariably rendered useless in the event of a denial of access. What brokers need to do
Insurance Brokers’ Monthly July/August 2010
Speakers’ Corner: Andy Hawkes, CEO of Cardinus Risk Management
Why managing risk makes sense
is look at the practicalities in the event of an invocation. What will happen to the phones and can they be transferred? Can the client get new premises rapidly? Is there alternative IT infrastructure available?
When recommending a business continuity solution make sure you deliver an invocation service that is controlled by the provider, not just a concierge option that seeks to react to the events. And, of course, a good business continuity plan should ensure a lower business interruption exposure and resultant premium.
I am a fi rm believer that the broker should be the conduit for all aspects of risk advice whether it be risk transfer, risk retention or risk management. Whether they have in house expertise or outsource to a dedicated risk management consultancy, the benefi ts to a long term relationship with the client is signifi cant.
Surely anything that can help the broker move the discussion from price to value must be good and from our experience risk management is a strategic discussion where value rules.
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