High Impact Risk & Insurance Governance in UK Manufacturing & Engineering25 June 2012
This report offers a unique perspective on the British manufacturing and engineering sector, which is undergoing structural change in a difﬁcult trading environment. This makes the companies concerned particularly sensitive to weaknesses in insurance practice that undermine the cover on which they depend.
This report builds the case to prove the following:
- The manufacturing and engineering sector is undergoing multiple changes which are reshaping high impact risk exposures across traditional lines of insurance, including business interruption (BI), product liability (PL) and professional indemnity (PI).
- Insurance protection against high impact risk in these areas is not reliable, as the insurance industry has failed to keep pace with the sector’s evolution. The system continues to rely on unreformed 19th century insurance legislation, which disproportionately passes the cost of this failure back to the customer.
- The risk impacts of these operational developments and the serious ﬁnancial consequences of insurance failure remain worryingly below the corporate governance radar.