The survey’s results indicate that the specter of increased regulatory scrutiny continues to be the greatest concern for many companies, which has driven a greater focus on compliance. Accordingly, multinational organizations are now seeking greater insurance regulatory and tax capabilities from their insurance brokers.
One of the most surprising survey findings was the importance assigned to the quality of network staff: 89 percent of respondents said that this was important, very important, or critical to their choice of a broker partner. Whether the broker’s network was owned or non-owned was important to fewer respondents (57 percent), while almost all (94 percent) identified technology as an important factor in their broker decisions.
New to the list of requirements by global risks managers is the use of key performance indicators (KPIs) to determine the efficiency and effectiveness of broker performance, and to underline the requirements for near-realtime communication of any changes. Risk managers’ interest in KPIs has grown over the years as performance-based remuneration has become more commonplace. This is likely motivated by risk and finance managers who wish to more clearly align TCOR (total cost of risk) performance with their firms’ operational KPIs.