The New Masters of Risk? How insurers are testing out their capabilities in finance
Profiles
AIG remains the undisputed leader
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James J. Schiro, CEO, Zurich Financial Services |
"THERE IS NO such thing as a fully protected risk," points out Geoffrey Riddell, chief executive of global corporate business at Zurich Financial Services, which ranks second among global insurers in our customer poll, while also being best for claims resolution in the regional votes for the US and Europe. "The cost must always be paid, even if that is by the individual, the company and its shareholders, the state, or an insurance company." Riddell recalls the fashion in the early 1990s for some large corporations not to carry insurance on the basis that 25-year P&L studies suggested that they paid out more in premium than they ever recovered in claims. That’s not an analysis many companies hold to today because they understand the carrying cost of that risk in terms of risk-adjusted return on capital.
