Risk industry must adapt or die: Aon
The Australian market's current risk management offering is a poor fit for the real threats to local businesses, most of which are "uninsurable".
Such is the view of risk management firm Aon, which said the sector is quickly losing relevance, particularly when it comes to threats like cyber attacks.
Aon said there's a significant onus on the risk industry to adapt to stay ahead of business risks or lose its key clients.
"Our industry is very sophisticated in handling smaller risks, such as health, vehicle and even safety. However...the truth is that the risk industry has struggled to develop strategies relevant to clients' needs in the catastrophic risk space," Aon Risk Solutions Australia CEO Lambros Lambrou said.
"The risk industry must stay ahead of clients and develop risk mitigation and financing strategies if they are to continue offering value and relevance," Lambrou said.
Recommended for you
The Federal Court has dismissed a conflicted remuneration case brought by ASIC against the director of life insurance distributor Freedom Group, where Bali holidays and Vespa purchases were among sales incentives.
Policy and advocacy specialist Benjamin Marshan has left the Council of Australian Life Insurers after less than a year, having joined in March from the Financial Planning Association of Australia.
The declining volume of risk advisers meant KPMG has found a rising lapse rate for insurance policies arranged by independent financial advisers, particularly in the TPD and death cover space.
The Life Insurance Code of Practice has transferred from the Financial Services Council to the Council of Australian Life Insurers.
