It seems you can’t afford it..

Christopher Riordan  23 September 2008 13:08:54

Hands up, I'm no finance or Risk expert, but reading between the lines, I refer specifically to the European  framework for governing insurance companies in the European Union, it would seem demonstrable and reliable processes has business value! Presumably if an Insurer cannot show documented and reliable practices they are likely to face tougher financial requirements..
So apart from the obvious of saving time and resource, good practice could make the difference between being able to compete (operate) in the market and not?

I also suspect, since insurance companies need confidence in the information they are supplied, that these kinds of measures will be passed onto the client. It would make sense to seek reassurance that the methods employed to provide insurance information are reliable. Or otherwise add caveats in the terms of the insurance to mitigate this risk. So again, there maybe financial benefit to a business that can show good practice?

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