Insurable Risk Profiling

In treating risks, organisations generally consider acceptance, avoidance, control or transfer, or a combination of these methods, and insurance remains a key risk transfer tool to most organisations.

All too often an ‘off the shelf’ insurance product is purchased which does not recognise specific underlying risks and as such may not achieve an optimum risk transfer. Even if the product fits well initially, the challenge is to ensure that changes in the organisation’s risk profile feed into the product design and selection. To achieve this, a thorough process of risk analysis should be completed in order to determine key risks, understand their financial impact, and determine the limits required to be covered by insurance.

Insurable Risk Profiling and Gap Analysis follows a structured process which demonstrates good corporate governance and can easily be linked to your organisation’s broader risk management activities. As well as providing management with an audit trail and point of reference for future assessment the key benefits that insurable risk profiling will bring to your organisation include:

• High level assurance that risks are transferred where intended.
• Greater understanding of the risks retained in your organisation, which may require alternative treatment methods.
• Linkage between insurance and your organisation’s overall process for risk management.
• Enhanced ability for ‘insurable’ risk to be sold to insurance markets in the best possible light by demonstrating that a sophisticated approach has been taken in its identification and analysis.