UKAS, the UK’s Accreditation Service, held a Think Tank on “Benefiting from Smarter Risk Management” at Marsh on the evening of 9 November 2004. One of the propositions was that a number of management standards reduced corporate risk, e.g. ISO 9001, ISO 14001, OHSAS 18001 or BS 7799, as well as other management, regulatory, social, environmental and ethical standards. Insurance industry representatives asserted that these standards did reduce insurance premia because they did reduce risk. A number of people in the audience remained sceptical of the insurance industry assertions as the assertions lacked quantitative backing.
In order to move forward the ideas discussed, at least two further pieces of research are needed:
Below is an outline for a project quantifying likely premia reduction
Quantifying Likely Premia Reduction
The objective of the research project would be to:
Realistically, this research would need to be undertaken in cooperation with brokers and/or underwriters. The research approach would be to: