BUSINESS CONTINUITY PLANNING
to take comfort in knowing based on a more holistic saying that if a disaster left their
that if a broker or knowledge of his clients office unable to operate they
Benefits of business
underwriter is consistently business. This in turn leads could recover in less than a week
continuity planning
using BCPs in this way, all to further classes being has dropped from 39 per cent in
By following an approach to
will benefit in the reduction purchased and premium 2006 to 28 per cent in 2009. The
BCP, brokers can:
of their risk, an argument savings being re-spent. numbers who claim it would take
● be able to differentiate
which can be equally applied more than six months for their
your product beyond
to other classes of insurance,
The market should
business to recover has nearly
pricing and least cost
such as BI
strengthen its resilience while
trebled – from four per cent in
quotes
demonstrating compliance and
2006, to 11 per cent in 2009, and
● be able to help clients
● Used to best advantage, this
– few (15 per cent) of the
technique will allow a new
improving solvency; which will in
understand professional risk
directors interviewed were aware
business model. While better
turn help premium stability. A
management
of BS25999 in relation to
broking and underwriting
point that will quickly come more
● gain a greater appreciation
Business Continuity Management
will reduce costs, savings
to the fore as insurers review the
of your clients business and
– this is the British standard to
need not necessarily be
value of their books in an attempt
win their trust
help minimise work disruptions.
passed on in their entirety as
to move away from volume based
● have the information to
There has been some
premium reductions.
models to qualitative risk based
help you cross-sell and
ones. confusion in the market between
increase premium income
Interestingly, BIBA’s Business disaster recovery plans and
● As risk analysis enhanced by ● help your clients become
BCP is employed at the point
Resilience Survey, conducted by business continuity plans. Disaster
more resilient
of sale, client relationships
Populus, stated: “Businesses are recovery plans typically cover IT
● be fully compliant with FSA
can be strengthened and the
now more pessimistic about their and telephony and only come in
SYSC 3.2.19G now and
broker can aspire to
ability to operate without their to play after the event, hence the
Solvency II when it arrives
becoming a trusted adviser
office than in 2006. The number operative word recovery.
● be better prepared for the
BCPs, however, address the
impact of the Law
The benefits of BS25999-compliant plans according to the British survival of all aspects of a Commission review
Standards Institute are: business in a broader range of ● be able to earn more
● Framework - Provides a common consistent framework, based on scenarios during the currency of money.
international best practice, to manage business continuity the crisis itself. These include such
● Resilience - Proactively improves your resilience when faced with areas as absence of key staff and
changing: first with the
the disruption of your ability to achieve key objectives failures in a businesss supply
implementation of the Companies
● Reputation - Helps protect and enhance your reputation and chain, e.g. failure of a critical
Act 2006 and, more recently, with
brand
supplier, disaster workplace
the publication of a British
● Competitive advantage – Helps you penetrate new markets and
recovery, stakeholder notification,
Standard for Business Continuity.
win new business
telephony recovery, IT availability,
The relevant sections of the
● Win more contracts cost effectively - Provides a marketing edge
pandemic protection, legal
Companies Act came into force on
and using certification can help reduce the cost of expensive
contracts, health & safety,
1 October 2007, while BS25999
tenders
reputation management, critical
was published on 20 November
● Business improvement - Certification requires a clear
document recovery and
2007 along with the final part of
understanding of your entire organisation which can identify
emergency money supply.
the standard for business
opportunities for improvement
In real terms, how a denial of
continuity management.
● Continuous improvement - The certification process involves
access to business resources Moreover, now that
regular audits which ensures that your management system is up
comes about is somewhat mute; tendering for all publicly funded
to date
the most pressing issue, and one work requires the presence a BCP,
● Compliance - Demonstrates that applicable laws and regulations
where the vast majority of thus creating supply chain
are being observed
businesses fail, is having in place pressure, substantially more
● Cost Savings - Creates opportunities to reduce the cost of BCM
uncontended pre-planned companies are actively seeking
audits and may reduce insurance premiums
immediate crisis management advice. In a not dissimilar vein,
● Delivery - Provides a rehearsed method of restoring your ability to
services (ICMS), that can begin to well-run companies who also
supply critical products and services to an agreed level and time
respond within one hour and be submit audited accounts can
frame following a disruption
well on the way to remediating expect an increased credit rating
● Management - Delivers a proven capability for managing a
the situation within four. by simply having a resilient BCP in
disruption.
This commercial situation is place.
Insurance Brokers’ Monthly 17
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