A RKH Specialty survey focusing on evolving insurance risks highlighted that 80% of insurance professionals are witnessing an increasing need for specialist risk coverages to provide better- targeted solutions for a wide range of P&C exposures. Of that significant percentage, about 39% recognised that the increasing need for specialist risk coverage is growing fast.
The survey also uncovered that supply chain disruption was the top property risk exposure with 61%, with flood and tornadoes following with 30% and 9% respectively. Cyber was identified as the top casualty exposure at 70%, with product risk and drones highlighted as the next largest risks at 11% each.
Conducted at RIMS 2015, this survey represents the views of US-based insurance professionals, its results are also reflected by other international research: nearly half (46%) of financial services professionals globally named cyber risk as their number one concern, a record high level according to a survey by DTCC, one of the world’s largest clearing houses. A Deloitte survey also validated the global concern surrounding supply chain disruption, identifying that there are now more risks to the supply chain and risk events are more costly.
“Losses stemming from cyber-related attacks and business interruption can be catastrophic for individual business,” said Barnaby Rugge-Price, RKH Specialty’s CEO. “Healthcare and retail have been the major buyers in the cyber space to date but we are seeing an increasing conversion rate across the whole of our portfolio. After a number of years of looking at the offering, clients are increasingly deciding to purchase the cover as the product has improved and the frequency of attacks has continued to increase. There has also been a heightened focus on the business interruption aspect, where cyber attacks can cause whole facilities to shut down. But whether cyber related or not, any interruption to the supply chain can cause a disproportionate loss. The survey highlights the importance of specialist insurance for a whole host of emerging risks.”
With 47% of survey respondents indicating that they tend to turn to domestic US brokers for their specialist risks and other emerging world markets in close pursuit, London offers a unique ability to support that demand. Barnaby Rugge-Price comments that U.S. clients tend to “seek the best value from their insurance spend by tailoring coverage around their firms’ specific exposures and needs. Our aim is to respond to the increasing requirement with specialty product advice and placement services around the globe. We will continue to work with our markets to ensure we are responding to each request, providing real value in both coverage and capacity.”
The full survey results can be viewed here.
Following the merger of RKH and Hyperion, RKH Specialty has been conceived to combine the specialty lines expertise of Howden and RKH, improving both the breadth and depth of products and services.