Marsh offering in U.K. helps largest firms measure value of insurance resources

Marsh has launched its Insurance Maturity Model in a bid to help Britain’s largest businesses to measure the operational returns derived from their insurance provision and improve insurance management.

“As the U.K. economy battles to recover from the global economic crisis, Britain’s largest businesses are continuing to re-evaluate their operating models to identify cost savings, improve efficiency and deliver greater stakeholder value,” Marsh notes in a statement issued Tuesday.

Marsh reports the model seeks to help clients assess their current insurance activities against a best practice model in key areas such as governance; insurable and non-insurable risk identification, analysis and evaluation; cost of risk approach; risk reporting and monitoring; risk transfer resourcing; and the management of third party providers.

The reporting data can then be used by organizations to determine the effectiveness of their insurance departments, develop a roadmap to achieve added value, deliver operational efficiency and, ultimately, ensure that the optimum return on investment is achieved from the insurance function.

“Organizations that fail to measure the total value derived from their insurance provision cannot be confident that these risks are being managed in a wholly cost-effective way,” Douglas Ure, leader of the U.K. Enterprise Risk Practice in Marsh Risk Consulting, comments in the statement.

By providing a vital link between an organization’s overall risk management and corporate governance processes, not only will the model “deliver improved stakeholder value, it can also enhance both risk-based and financial performance and competitiveness in the battle against continuing economic headwinds,” Ure adds.