Difficulty Quantifying Losses Tops List of Challenges to Business Interruption Claims
NEW YORK (April 25, 2017) — By taking control of their data, establishing a team and developing plausible business interruption (BI) figures before losses occur, risk managers can do much to lessen the confusion and frustration common to these claims process, according to RIMS Business Interruption Survey 2017.
Key findings from the recently published survey:
- Only 17% of risk managers were “extremely confident” that their BI values and limits are adequate;
- 58% of risk managers who have been through a claim said that “difficulty quantifying loss” was the biggest challenge they faced;
- 39% of risk managers indicated that their existing BI policy provides either insufficient or no coverage for cyberrisk. 10% were unsure whether the policy covered cyberrisk.
“With a world of emerging risks keeping business leaders up at night, risk professionals must prepare their organizations for the very real possibility that their business might suddenly come to a screeching halt,” said RIMS CEO Mary Roth. “The exchange of knowledge and best practices makes it easier for risk professionals to ensure that appropriate measures are taken before, during and after an interruption occurs.”
RIMS Business Interruption Survey 2017 was developed by members of RIMS Business Interruption Working Group. The group comprises global business interruption experts from leading underwriters, accounting firms and brokerages including Ernst & Young, Marsh, Meaden & Moore and Vericlaim. The group oversaw the survey, providing analysis and case studies to further explain the findings.
The survey was distributed to RIMS membership via internet link and was fielded between September 28 and November 17, 2016. Nearly 400 RIMS members participated in the survey.
The RIMS Business Interruption Survey 2017 is now available in RIMS Risk Knowledge library at www.RIMS.org/riskknowledge.