'Uninsurable' risks get cover

risk management solutions designed to help companies cope with previously 'uninsurable' risks, reports Insurance Daily.

The offering aims to address grey area risks such as loss of intellectual property rights, inability to manufacture or distribute a product because of another organisation's product recall, regulatory risks, and IT network disruptions or suspensions.

PR News Wire reveals that Emily Freeman, executive director of Lockton's Global Risks team in London, says insurance underwriters have traditionally focused on mainstream property and casualty risks, which can leave many of the exposures surfacing for today's enterprises uncovered.

“Enterprise Disruption Contingency Insurance provides customised coverage for risks that many risk managers and executives have found previously uninsurable," explains Freeman.

According to India Info Online, a KPMG risk management survey claims poor risk management practices at major companies, especially financial institutions, have often been cited as a key contributor to the global economic crisis.

KPMG found that 42% of surveyed respondents are not satisfied with the quality of integration of risk management.

In addition, 50% of respondents believe that regulations will positively influence risk management, according to the KPMG survey.