Airmic lauds Lloyd’s pandemic recovery and resilience plan

Airmic, the UK association for risk and insurance professionals, has welcomed  Lloyd’s proposals for how the insurance industry can support global economic and societal recovery from the impacts of COVID-19, and to build resilience for future systemic catastrophic events.

“Lloyd’s proposals address the fact that businesses are facing very acute and immediate challenges from the impact of the global pandemic while also considering the medium and long-term insurance challenges that the pandemic has exposed," Airmic said in a statement.

“We are very much at the beginning of the crisis, and businesses need practical support and insurance solutions for potential future waves and unexpected consequences of this virus and Lloyd’s has shown leadership in proposing practical solutions. We welcome the fact that the report also looks beyond the pandemic and addresses the need to find a framework for coping with the devastating and long-term impacts of systemic catastrophic events.

“The proposed solutions are the product of broad thinking and extensive consultation with Lloyd’s customers, including those represented by Airmic, the insurance market and government. This collaboration is welcomed as it is vital during such a far-reaching crisis. Only by working together will we emerge from the pandemic stronger, and Airmic is looking forward to working with Lloyd’s in turning this into a reality.”

Meanwhile, a new research by Airmic reveals how organisations are responding to pandemic disruption.

The study shows that while most businesses had pandemic on their risk registers, the response plans were designed to cope with a localised disease rather than a global pandemic. The scale and velocity of COVID-19 took many organisations by surprise, said Airmic.

According to the report, risk professionals are taking a central role in managing the crisis. Airmic argues that the COVID-19 situation is therefore an opportunity for risk professionals to demonstrate the strategic value of their work to their organisations.

The report also highlights the impact of the pandemic on insurance buying trends. Even before the pandemic, the hardening market meant that a lack of adequate insurance cover at an affordable premium was emerging as a risk in itself.

Airmic warned that “an ill-judged response to the pandemic” could trigger a flight to alternative transfer options, including captives.

The association urges insurers, brokers and insurance buyers to work together openly and constructively, particularly during the COVID-19 crisis.

“The report clearly shows that risk professionals who can combine agility with effective leadership will respond most effectively to the challenges of returning to business as we emerge from the lockdown,” said Julia Graham, Airmic’s deputy CEO and technical director. “Risk professionals have been rising up the corporate ladder for some time, and now is a vital period for seizing opportunities. It is the time to innovate, not retreat – both for organisations and individuals.”