Page 19 - Insurance Times August 2018
P. 19
The Evolution of the Risk Manager : The risk manager has he may believe in deductibles and some approaches to self-
evolved through four stages insurance, he tends toward one big package at the lowest
Y Insurance Clerk possible price, all things considered. His choice of broker or
agent or any other intermediary is probably dictated from
Y Insurance Buyer above although he may be able to express a limited opinion
in some firms.
Y Insurance Manager, and
His approach to safety and property preservation is limited.
Y The Risk Manager Instead he develops his savings through tough premium
negotiations He tends to protect his own position
Insurance Clerk : through broad all-inclusive policies with high limits (referred
to in the trade as "sleep insurance") which will protect the
He serves the role of maintaining policies sent to him the firm and his job from any known and most unknown
Chief Executive Officer or an insurance salesman. He pays happenings.
authorized bills, sends in the claims and really neither wants,
nor can have, any say in the determination of what is
insured, or what is not, or who writes the business or how.
The Insurance Buyer : The Risk Manger Evolution:
His source of insurance may be an agent or broker writer Responsible for determining potential fortuitous loss to
but the choice of whom probably still remains with top corporate personnel and assets. And, after analysis of the
management. He cares little about the insurance market effect on the corporate position, fiscal and otherwise,
conditions, nor the insurance carriers nor his own claim recommends the proper approach to protecting these
experience. What is important is that each renewal is bid personnel and assets from loss. His tools are Contracts
by three or more companies and the lowest net price gets (insurance and other); Retention (full and partial); Reduction
the business regardless of any other factors. (loss control and parties).
He also believes that for every amount of premium spent His knowledge of the purse of the insurance community is
there should be a claim amount returned and that the fine-honed and he is well-educated his field. (His background
insurance carrier is obliged to live on its investment income. will include a speaking knowledge of insurance, finance,
He cares little about safety or insurance company inspection business administration, industrial engineering, human
recommendations. His is a world of companies and coverage relations, labour relations, loss control, construction
only. engineering, and fire protection.) He must have access to
top management planning at an early stage and have full
The Insurance Manager : backing of management to cross corporate lines with his
recommendations.
A skilled insurance technician, he knows coverage, markets
and insurance programs. He design plans to fit the needs of As his is a staff function, he can ony recommend steps to be
his organization using what markets are available. Although, taken by line personnel, thus, he must have corporate
stature. His risk management responsibility includes all lines
of coverage, on a worldwide basis, over all corporate
personnel and assets. His authority toward insurance
includes choice of insurance intermediary, coverage and
premium negotiations and settlement of claims and power
to implement his programs.
He may or may not insure; the choice of Contracts or
Retention must be his. Following his analysis and
identification of risk, he decides whether to assume, control,
eliminate or transfer the risk. It is also necessary that he be
vitally concerned with the reduction of risk through loss
control and Property Preservation and the Recovery of loss
through his claims control program.
The Insurance Times, August 2018 19
