The current economic climate provides opportunities to the best managed companies, but is challenging everyone to drive down their costs. Most are not solely focused on minimising their total cost of risk, but also in optimising opportunities by having better control of the financial impact of surprises and creating competitive advantage with a more creative approach to insurance and risk management.

To better understand the impact of the economic downturn on organisations, Marsh commissioned an independent research agency, Ipsos, to conduct a survey of risk management in Europe. The survey examined attitudes to risk, including risk priorities, strategy, management and solutions. Over 700 senior executives were interviewed, spanning 12 countries and 7 industry sectors.

Traditionally, many directors have relied upon indemnities given by their companies in order to protect them and their personal wealth. However, if a company becomes insolvent – an increasing risk in the current economic climate – these indemnities may be virtually worthless.

This paper outlines the actions directors can take to maximise their protection, so they can concentrate on enhancing the performance of their businesses – and reap the rewards.

Marsh announces its 2009 Global Captive Benchmarking Report and launches new risk financing facilities for small and mid-sized businesses.

Following reports concerning the confirmed cases of swine flu (A/H1N1) among the human population in Mexico, Canada, the United States, UK, Spain and several more countries, this Adviser outlines the risks and insurance implications for businesses arising from a subsequent human pandemic.

Marsh’s first Financial Institutions Captive Benchmarking Analysis report will be published in September 2008. The report will be the most in-depth review of the use of captive insurance companies by global financial institutions publicly available.

Marsh has released its first benchmarking report examining the use of captive insurance companies by power and utilities companies in three regions: the US; Europe, the Middle East and Africa (EMEA); and Asia Pacific.

The world of mergers and acquisitions (M&A) has gone global. Twenty years ago, much activity was focused on the domestic or local market; now, companies are just as likely to be seeking targets far beyond their own country borders.

Marsh has revealed many European firms are failing to overcome a ‘perception gap’ in their approach to business continuity management (BCM).

Global Corporates Increase Self-insurance Despite Falling Insurance Rates

Marsh, the world’s leading insurance broker and risk adviser, today released the first ever global benchmarking report examining the use of captive insurance companies by today’s global firms. (A captive insurance company is formed to allow a company to efficiently retain risk, by self-insuring the exposures of the parent group to which it belongs).

Although annual captive premium income is estimated at up to 38 billion euro, Marsh’s report, Next Generation Captives – Optimising Opportunities is the first detailed look at how their use compares by region, by domicile and by industry.

Key findings include:

• Bermuda is the single favourite domicile for captives, accounting for 29% of the total.
• Dublin has the third largest number of captives in Europe.
• Captives are used for a variety of risks, with 20% of business underwritten being for property damage, 18% for general or third party liability and 12% employers’ liability and workers’ compensation.
• Financial institutions account for 20% of all captives, with healthcare companies owning 11% and manufacturers 10%.
• Globally, captives are significantly better capitalised than required by current levels of risk assumption, but many are not optimising their captive structure. Whilst half are achieving a return on capital of greater than 10%, more than one-third have a return of 5% or less.

With 170 licensed captives, most owned by major multinationals, Ireland has established itself as a key domicile in the European marketplace.

As insurance markets have changed over the past 40 years, one of the few constants has been the steady development of captive growth. As their number continues to grow, even through soft insurance cycles, it is clear that captives are here to stay. Ireland has a key role to play in the continuing evolution of the captive model, offering captive owners access to the EU market.

Marsh can advise companies on how best to structure a captive vehicle and optimise its value within their wider risk and insurance programme. It is vital that Irish firms who are considering setting up a captive consider the benefits, usage and optimum structure carefully, whilst those who already have captives in place should regularly review performance to ensure that it is being fully optimised. Marsh also has a captive management operation in Dublin.

For more information on the contents of this report, please contact Michael Johnston on 01 604 8364 or click here to email.

Global Risks 2008 Report Highlights the Need for New Thinking and Concerted Action in a Number of Problem Areas

The Global Risks Network is a program in which MMC has been working in collaboration with the World Economic Forum, Citigroup, Swiss Re, Zurich Financial Services, and the University of Pennsylvania's Wharton School Risk Center to identify major global risks, assess their economic impact, and develop mitigation solutions. The risks identified are global in scope, have cross-industry implications, and significant economic and social impact.

Each year the Global Risks Network captures its findings in the Global Risks Report. This year's report highlights the need for new thinking and concerted action in a number of problem areas. It expresses fears that the current liquidity crunch will spark a U.S. recession in the next 12 months, and calls for new thinking on systemic financial risk in response to the revolution in financial markets over the last two decades. The report recommends a set of principles for country risk management and examines how the financial sector might take on an increasingly important role in risk transfer in the future.

The report also warns that food security will become an increasingly complex political and economic problem over the next few years, with issues of equity and trade offs between security and other issues making the design of global policy both difficult and necessary. Greater co-operation on managing vulnerabilities associated with cross-border supply chains and concentrations of production may also be needed. Finally, with the dollar price of oil at record highs, the report recommends an improved approach to securing viable energy supplies in the years ahead.

For more information on the contents of this report, please contact Michael Johnston on 01 604 8364 or click here to email.

2007 EMEA Liability Insurance Buyers Report: Risk and Reward

The 2007 EMEA Liability Insurance Buyers Report: Risk and Reward, comprises data from over 2800 companies from around the region, and identifies four major risk areas that are increasing in complexity and scale, while the insurance markets continue to undercut their rivals by offering reduced premiums.

These four areas are pandemics, terrorism, the environment, and new technology – nanotechnology in particular. Look out for our 2007 global Limits of Liability benchmarking report, and European industry reports focussing on transportation, technology and chemicals sectors.

For more information on the contents of this report, please contact Michael Johnston on 01 604 8364 or click here to email.

Corporate Pandemic Preparedness: Current Challenges to and Best Practices for Building a More Resilient Enterprise

A report by Marsh and The Albright Group warns that the catastrophic impacts of a long-lasting pandemic are not only likely to happen, but overdue. The study also states the impact of a pandemic is likely to exceed what most corporate and governmental leaders have imagined, or are prepared for.

For more information on the contents of this report, please contact Michael Johnston on 01 604 8364 or click here to email.