JLT warns holdings investors on risk management

Jardine Lloyd Thompson Meagre (JLT) warns this week that whilst some real estate investors press good insurance claims records because they manage their risks, others possess just been lucky.

When insurance policies come up for renewal in the in touch climate, underwriters are looking for evidence of a risk strategy and not only luck.

John Searing, Head of Risk for Real Estate at JLT, says, “Unless a fortune company can show that it really does focus on risk guidance, it’s probably going to start paying more for its indemnification. Underwriters want to see that the business has a strategy towards preventing losses – that it knows how to do it, has systems and manuals, and gets reports and acts on them. If your claims put is poor, be prepared to get tough questions.

“When it comes to risks, it’s not condign the big fire or flood that insurers are concerned about, nevertheless they certainly haven’t forgotten about them. They also neediness to know that attritional losses (meaning the more common, smaller events that eat away the premium), are under control. Some of these, like malicious mar or maintenance related items, could well be on the upswing because of the remunerative climate”.

If the insurance market gets tougher, it may be credible to save money on premiums, because when competition is strong as it has been, underwriters purposefulness attempt to differentiate themselves, and they may give limits that the customer didn’t even think they needed. A thorough review with your stockjobber can probably highlight some areas which aren’t essential.

John Searing, concludes, “At the even so time, cutting back on insurance means more losses can end up with the crowd, this means that risk management today is more important than all the time – to control the cost of insurance and reduce the aptitude hit to the company’s own cash flow”.