| big interview |
| CHEMICAL INDUSTRY JOURNAL SUMMER 2018 |
Simon Thompson
How deeper collaboration can create opportunities for improved business resilience In this issue, we speak to Simon Thompson, Managing Director and Chemical & Life Sciences Practice Leader at Marsh, about the evolution of insurances broking, the issues of importance to the chemical industry today, and the some key risks emerging for the industry. THE BACKGROUND With a heritage dating back almost 150 years, Marsh has a long and distinguished history of assisting chemical and other industry clients with their insurance. It is now a global leader in risk management, insurance broking and advisory services. While headquartered in the New York, Marsh has over 20 offices in the UK and a network presence in 120 countries. The firm’s UK client portfolio includes start-ups, established national businesses, FTSE 100, and global companies. “I’ve been in the risk business for over 30 years and enjoyed serving clients in a wide range of industries globally before specialising in chemical and life sciences in 2001.’’ Simon notes. “Currently I lead our practice in the UK, working closely with my industry counterparts globally. We use our combined experience and data to assess and benchmark risk, raise best practice and drive improvements in risk and insurance solutions. This industry specialisation has proven to be a key benefit to our clients, and a differentiator for Marsh.”
It is notable to observe how clients’ needs have changed in recent years. From being a ‘once a year’ outsourced insurance procurer negotiating and servicing insurance needs, increasingly brokers are required to act as a strategic advisor using a more intimate understanding of our clients’ businesses. Clients engage not only with our brokers but our chemical engineers, actuaries, forensic accountants and legally qualified claims specialists. We’ve become a trusted business advisor and, increasingly, an integral part of our clients’ risk teams.” Typically, Marsh’s clients now engage them further up the ‘risk chain’, including: Identification
Building risk registers
Mitigation
Validating risk management frameworks & executing projects
Quantification
Risk scenario testing and evaluating financial consequences
Retention
Modelling the financial tolerance and appetite of the business
Transfer
Designing optimum insurance programme to transfer risk
Service and At head office and subsidiary levels claims support worldwide
HOW DO CHEMICAL CLIENTS ENGAGE INSURANCE BROKERS?
Simon explains: “This closer engagement enables us to create data-driven bespoke solutions with ‘fit for purpose’ insurance cover, and allows our claim specialists to drive the optimum response from the insurance policies, should a loss occur.
“Our focus is all about helping clients to reduce risk, and reduce the impact of an event if it happens,” explains Simon. “We specialise in creating novel solutions to address each client’s unique risk challenges. Working closely with clients we analyse their risk profiles in detail, before recommending fit for purpose insurances.
For example during a recent forensic programme review, we integrated the results of a retention study (to actuarially model the client’s risk tolerance), a natural catastrophe study of their key sites and a policy coverage review. The outcome for the client was a redesigned insurance programme achieving higher (necessary) policy limits,
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