ERM underserved by insurers and brokers: J.D. Power study

Risk managers want more strategic discussion

Managers and professionals handling Enterprise Risk Management are underserved by insurers and brokers, according to a new study done by J.D. Power and the Risk Management Society.

 

The 2014 Large Commercial Insurance Report is based on responses from nearly 1,000 risk professionals or employees of an organization that provide oversight or are members of their organization’s risk management team. Organizations included in the report have at least $100 million in annual revenue or operating budget, and have purchased a commercial property, workers’ compensation or auto policy with a profiled insurer or broker.

 

The study says ERM is becoming a more important function at many organizations, with nearly 40 percent of risk professionals saying it falls within their area of responsibility. Risk professionals who don’t handle ERM generally are more satisfied with their insurers/broker.

 

Timothy Bebout, director of commercial insurance at J.D. Power told Top Broker that overall, “what risk managers or professionals want the broker and the insurance company to interact with them more frequently.”

 

Bebout says risk professionals with companies in fields like manufacturing, telecom, health care and with hundreds or thousands of employees have “needs that are diverse” and are looking for strategic discussion.

 

For many risk managers, he says, it’s a case of “When we sit down and talk, I expect a great understanding from a broker about my business and what its needs are.”

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Transcontinental Media G.P.