The comment in the last paragraph “companies that have not invested in … Risk Management will become irrelevant” speaks to the across the board reductions in engineering staffs over the past several years that has virtually destroyed the effectiveness of the industry’s most talented loss / risk control & loss prevention personnel. FIA / IRI was once major property underwriter until the members of their executive committee (large capital stock companies)insisted on reducing the operating costs of the company by reducing engineering staff. The same has been done in many individual companies in the p/c industry, seeking profit by reducing the cost of payroll without any recognition for the benefit of strong risk management teams. Will they ever learn?
The comment in the last paragraph “companies that have not invested in … Risk Management will become irrelevant” speaks to the across the board reductions in engineering staffs over the past several years that has virtually destroyed the effectiveness of the industry’s most talented loss / risk control & loss prevention personnel. FIA / IRI was once major property underwriter until the members of their executive committee (large capital stock companies)insisted on reducing the operating costs of the company by reducing engineering staff. The same has been done in many individual companies in the p/c industry, seeking profit by reducing the cost of payroll without any recognition for the benefit of strong risk management teams. Will they ever learn?