Posted on 21 May 2010
Insurance broker and risk adviser Marsh has forecast continuing stability for the commercial insurance sector throughout 2010, but warned that new challenges will be posed for risk managers.
The Competition Nets Rewards -- Multinational Client Service Insurance Market Report 2010 describes how opportunities are increasing while at the same time risk management has a higher profile than in the past.
Marsh's UK leader of the Risk Management Practice, George Davies, explained that proper risk management was contingent upon timely information, comprehensive understanding of regulations and anticipation of local and global events.
Marsh came to the view that stability would continue this year by identifying regional trends, particularly high levels of competitiveness and increased capacity.
The report also indicates that global insurance and tax regulations need to be paid great heed as they are being enforced more strictly than before.
The EU, Canada and elsewhere have begun to challenge the insurance programs of multi-national companies, in bid to acquire premium-related taxes.
Insurers will also have to contend with increased regulation in the form of Solvency II.
Solvency II is due to come into effect in 2012, with a recent survey commissioned by Clear Path Analysis suggesting that 36% of UK insurers were worried the UK insurance sector as a whole would not be prepared in time.