Research shows European firms not properly prepared for emerging risks

Most European companies are not properly covered for emerging risks such as terrorism and political violence, according to research from ACE Group.

Roughly one-third (32%) of firms cited terrorism and political violence as the most important risk concern for their business, yet only 7% of companies have comprehensive insurance for these exposures and 34% have none at all, ACE notes.

The survey of more than 600 European companies also asked questions about the following types of risks: environmental, multinational/export, IT, cyber, directors’ and officers’ (D&O) liability and business travel. The second and third most prominent issues facing companies were environmental risk (30%) and multinational/export risk (27%).

“Our research indicates that the majority of European companies feel under-prepared to deal with the emerging risks they face,” says Andrew Kendrick, chairman of ACE European Group. “It also points to a number of steps that companies can take to increase preparedness.”

One in five (companies) believes these risks are covered under another policy, “but our experience shows that this is often not the case,” adds Piers Gregory, terrorism underwriting manager of ACE European Group. “Insurers and brokers must work together to help European businesses understand the potential gaps that exist in their insurance cover and make informed decisions on insurance purchasing.”