Commercial insurance ‘not fit for purpose’
UK businesses are exposing themselves to significant and unnecessary losses due to 'serious flaws' in the way their corporate insurance policies are arranged, according to a new report.
The new Mactavish/PwC study of commercial risk reveals serious deficiencies in how corporate insurance is arranged and the role of boards in governing those arrangements. According to the research this is leaving companies vulnerable in the event of a large loss and subsequent dispute with their insurer.
Bruce Hepburn, chief executive of Mactavish, said: “The deficiencies the report reveals in how insurance is arranged are disturbing. What we see today is a system that has prioritised low transaction costs above reliable insurance policies.