Media
May 2010
BC Plans have a positive effect on insurance
The Business Continuity Institute has published its report into the link between good Business Continuity Plans and Business Interruption (BI) insurance, following discussion with representatives from AXA, Zurich, the Chartered Institute of Loss Adjusters, the Association of Insurance & Risk Managers, Marsh and the BSI (British Standards Institute).
The conclusions were that an effective and accurate Business Continuity Management process could bring benefits in five key areas:
- BCM helps organisations mitigate impact, recover faster and minimise losses, thus leading to a better 'insurable' risk and quality of book
- BCM can be used to protect against losses incurred through traditionally non-insurable perils such as supplier insolvency or pandemic influenza.
- BCM can be used to better understand the requirements for BI cover (and potentially lower the amount of cover needed).
- BCM can help obtain BI cover where otherwise it would not be available.
- BCM can help to secure optimal terms for cover.
So, there is a growing understanding and practical application of the positive links between an effective BCM process and the cost of insuring against business interruption and, indeed, all insured risks.