18th July 2003.
Charities struggling to find insurance may be able to widen their options by embracing risk management at all levels within their organisation. Zurich Municipal, a leading provider of risk management and insurance to the charitable and voluntary sectors, delivered this message at an event organised to examine the issue of restricted insurance capacity in the voluntary and charitable sector, and responses to it.
Zurich Municipal has helped the Association of British Insurers (ABI) to organise the event, in response to requests from charities for an educational session examining practical ways of increasing access to insurance. Zurich Municipal gave a key note speech, and also providing a practical, interactive seminar on risk management.
Ronan Ball, Head of Zurich Municipal’s Community Insurance Centre, which insures 15,000 organisations across the voluntary, charitable and public sectors, said; "Falling stock markets, the rise of the claims culture and changes in legislation are just some of the factors that have combined to place extreme pressure on the insurance industry. Many insurers have responded to these pressures by ceasing to insure charities and voluntary organisations, and focusing instead on their ‘core markets."
"We are advising charities to invest in risk management in order to give themselves more chances of securing insurance, and securing insurance at the best possible terms. Risk management is a key part of business planning. If an organisation is not regularly assessing risks, and putting in place strategies to mitigate or eliminate these risks, then it is placing itself at the mercy of the unknown. Conversely, a thorough approach to risk management will send out a positive message to potential insurers."
Sarah Richards, Senior Partner at Zurich Municipal Management Services, the strategic risk management consultancy arm of Zurich Municipal, added; "Taking risk management seriously is about more than just insurance. At the more strategic level, many risks are uninsurable. For example the risk to an organisation of over dependency on one or two key staff, or the risk of a partnership venture with another organisation failing and bringing negative publicity or hitting morale."
"Corporate governance best practice is increasingly seeing risk management embedded at the highest level within an organisation – and charities are no exception."
-Ends-
Notes to Editors:
- Zurich Municipal Management Services is the strategic management consultancy arm of Zurich Municipal and Zurich Financial Services Group. It specialises exclusively in helping public services manage risk based on practical experience. Zurich Municipal Management Services’ solutions cover corporate governance arrangements, strategic planning, business risk management, service delivery, strategic partnerships, e-government and self-assessment.
- Zurich Municipal is the leading provider of risk management and insurance solutions to Britain's public services. The company employs nearly 600 staff dedicated to providing expert advice and support to public service providers. For further information visit www.zurichmunicipal.com.
- Zurich Municipal reached its 10th anniversary in March 2003 - a month that also marked the 100th anniversary of Zurich Municipal's predecessor organisation - Municipal Mutual Insurance.
- Zurich Municipal is part of Zurich Financial Services, an insurance-based financial services provider with an international network that focuses its activities on its key markets of North America, the United Kingdom and Continental Europe. Founded in 1872, Zurich is headquartered in Zurich, Switzerland. It has offices in approximately 60 countries and employs about 68,000 people.
For further information please contact:
Pritie Billimoria, Catherine Webster or Robert Blevin.
Tel: (0)20 7535 9950
