Updated:: who actually benefits from buying “risk protection”?


I attended an interesting seminar last evening [June 2011], arranged by the Institute of Directors and sponsored by Zurich. Interestingly these organisations also provided (by some margin) the most interesting speakers. The Seminar was entitled “The Reality of Managing Risk”.

“Easy” conclusions: the industry prefers to profit from peddling “faux certainty” (in the form of risk modelling) than acknowledge and prepare its customers and shareholders for the REALITY of uncertainty; Managing, even influencing, risk is a minefield – but is made worse when, conventional RM purports to know and be able to “manage” more than it, in reality, can! Insurance industry leaders of the prevailing culture have established that THEY are better served by achieving short-term goals in relation to price, GWP, growth and market share, than by pursuing long term strategies based upon underwriting risk for profit, rewarding a responsible approach to “business resilience” and building stable – sustainable –  transparent – relationships. Read more of this post