‘Understand, anticipate risks’

Mike McGavick, CEO of XL Group plc recently told Germany’s leading risk managers and key stakeholders that understanding the risks facing German companies is critical to the insurance industry remaining relevant in the future. Speaking at the Deutscher Versicherungs–Schutzverband (DVS) Symposium, McGavick said:  “The role of risk managers and that of the insurance industry has never been more challenging. Today the world is changing faster than ever before and risk is becoming riskier.  If the commercial insurance industry is to remain relevant, we must establish our place in this changing world.”

He continued: “It is the job of the risk manager and insurance industry to move to understand and anticipate these risks, and fast. We must innovate and be agile in our thinking if we are to meet the challenges of understanding future risks.”

McGavick also drew attention to some of the advancements being made particularly in respect of cyber risk and political risk. He said: “These coverages aren’t yet where they should be in terms of truly tackling the risks being faced by clients in these areas, but they show promise.”

Concluding McGavick said: “Germany, as the world’s third largest exporter, has significant insurance purchasing power; insurers and those in the business of risk must work together to transform unpredictable challenges into well-defined solutions to meet the requirements of German businesses.”