Retail & Wholesale Global Risk Management Survey 2015

Benchmark Report for: Industry Grouping - Retail Trade/ Wholesale Trade

Global Risk Management Survey

Benchmark Report for: Industry Grouping - Retail Trade/ Wholesale Trade (126 Respondents)

General Information

1: Please select the main industry sector that applies to your organization.

Retail Trade/ Wholesale Trade Overall

Agribusiness 0% 2%

Aviation 0% 2%

Banks 0% 4%

Beverages 0% 0%

Chemicals 0% 4%

Conglomerate 0% 1%

Construction 0% 8%

Consumer Goods Manufacturing 0% 4%

Educational and Nonprofits 0% 4%

Food Processing and Distribution 0% 3%

Government 0% 2%

Health Care 0% 5%

Hotels and Hospitality 0% 1%

Insurance, Investment and Finance 0% 7%

Lumber, Furniture, Paper, and Packaging 0% 2%

Machinery and Equipment Manufacturers 0% 4%

Metal Milling and Manufacturing 0% 3%

Natural Resources (Oil, Gas and Mining) 0% 4%

Non-Aviation Transportation Manufacturing 0% 2%

Non-Aviation Transportation Services 0% 4%

Pharmaceuticals and Biotechnology 0% 3%

Printing and Publishing 0% 1%

Professional and Personal Services 0% 5%

Real Estate 0% 3%

Restaurants 0% 1%

Retail Trade 63% 6%

Rubber, Plastics, Stone and Cement 0% 2%

Technology 0% 3%

Telecommunications and Broadcasting 0% 2%

Textiles 0% 0%

Utilities 0% 4%

Wholesale Trade 37% 3%

2: What is the home region of your organization?


North America 33% 33%

Europe 51% 46%

Asia Pacific 3% 9%

Latin America 11% 11%

Middle East & Africa 2% 1%

3: Which company type most applies to your organization?


Public 39% 35%

Private 57% 52%

Government/Government owned corporation 1% 5%

Not for Profit 0% 6%

Other 3% 2%

Benchmark Report for: Industry Grouping - Retail Trade/ Wholesale Trade Page 2 GRMS (2015) - Aon Risk Solutions

4: What is your current employee count?


0 - 249 27% 23%

250 - 499 5% 8%

500 - 2,499 13% 23%

2,500 - 4,999 6% 12%

5,000 - 14,999 16% 16%

15,000 - 49,999 16% 11%

50,000 + 17% 8%

5: What is your total annual revenue (turnover) for the most recent financial period? (Total Annual Revenue in US Dollars)


USD 0 - USD 99M 17% 23%

USD 100M - USD 249M 10% 11%

USD 250M - USD 499M 10% 10%

USD 500M - USD 999M 7% 9%

USD 1BN - USD 1.9BN 6% 8%




USD 5BN - USD 9.9BN 11% 7%

USD 10BN - USD 14.9BN 7% 3%

USD 15BN - USD 19.9BN 2% 1%

USD 20BN - USD 24.9BN 2% 2%

USD 25BN + 10% 4%

Cannot Disclose 4% 6%

6: In how many countries does your organization operate?


1 30% 35%

2 - 5 29% 20%

6 - 10 13% 11%

11 - 15 3% 5%

16 - 25 8% 7%

26 - 50 10% 10%

50+ 6% 11%

7: What is the role of the person who is providing the majority of the survey answers?


Chief Executive 2% 6%

President 0% 2%

Chief Financial Officer 16% 12%

Treasurer 2% 3%

Company Secretary 1% 1%

Chief Operations Officer 1% 1%

Chief Administration Officer 2% 1%

Chief Risk Officer 5% 8%

Chief Counsel /Head of Legal 3% 3%

Head of Human Resources 1% 1%

Managing Director/Partner 2% 1%

Risk Manager or Insurance Manager 42% 38%

Risk Consultant 2% 2%

Finance Manager 4% 5%

General Business Manager 2% 2%

Other 15% 14%


Key Risk Issues

8.1: Please review the following risk issues and indicate the TEN KEY RISKS for your organization (No other ranking or prioritization required).


Corporate - Corporate social responsibility/sustainability 26 22

Corporate - Damage to reputation/brand 2 Most Frequently Selected 1 Most Frequently Selected

Corporate - Directors & Officers personal liability 21 20

Corporate - Failure to innovate/meet customer needs 6 Most Frequently Selected 6 Most Frequently Selected

Corporate - Growing burden and consequences of corporate governance/compliance 29 16

Corporate - Loss of intellectual property/data 27 25

Corporate - Failure to implement or communicate strategy 19 26

Corporate - Outsourcing 43 Least Frequently Selected 38

Corporate - Merger/acquisition/restructuring 35 28

Corporate - Joint venture failure 49 Least Frequently Selected 48 Least Frequently Selected

Crime/Security - Terrorism/sabotage 41 41

Crime/Security - Kidnap and ransom/extortion 43 Least Frequently Selected 52 Least Frequently Selected

Crime/Security - Crime/theft/fraud/employee dishonesty 13 24

External Factors - Climate change 45 Least Frequently Selected 45 Least Frequently Selected

External Factors - Commodity price risk 12 11

External Factors - Economic slowdown/slow recovery 3 Most Frequently Selected 2 Most Frequently Selected

External Factors - Globalization/emerging markets 38 36

External Factors - Increasing competition 1 Most Frequently Selected 4 Most Frequently Selected

External Factors - Natural resource scarcity/availability of raw materials 37 40

External Factors - Pandemic risk/health crises 52 Least Frequently Selected 44 Least Frequently Selected

External Factors - Political risk/uncertainties 21 15

External Factors - Regulatory/legislative changes 7 Most Frequently Selected 3 Most Frequently Selected

External Factors - Social media 30 46 Least Frequently Selected

External Factors - Sovereign debt 49 Least Frequently Selected 51 Least Frequently Selected

External Factors - Weather/natural disasters 16 18

External Factors - Accelerated rates of change in market factors and geopolitical risk environment 31 34

Financial - Asset value volatility 40 42

Financial - Capital availability/credit risk 24 19

Financial - Cash flow/liquidity risk 23 12

Financial - Counter party credit risk 16 27

Financial - Exchange rate fluctuation 14 17

Financial - Interest rate fluctuation 45 Least Frequently Selected 37

Financial - Pension scheme funding 49 Least Frequently Selected 50 Least Frequently Selected

Financial - Share price volatility 41 49 Least Frequently Selected

Human Capital - Absenteeism 45 Least Frequently Selected 47 Least Frequently Selected

Human Capital - Failure to attract or retain top talent 8 Most Frequently Selected 5 Most Frequently Selected

Human Capital - Harassment/discrimination 52 Least Frequently Selected 53 Least Frequently Selected

Human Capital - Inadequate succession planning 31 30

Human Capital - Injury to workers 18 23

Human Capital - Understaffing 45 Least Frequently Selected 43

Human Capital - Unethical behavior 38 38

Human Capital - Workforce shortage 34 32

Human Capital - Aging workforce and related health issues 31 35

IT - Computer crime/hacking/viruses/malicious codes 4 Most Frequently Selected 9 Most Frequently Selected

IT - Lack of technology infrastructure to support business needs 27 31

IT - Technology failure/system failure 9 Most Frequently Selected 13

Operational - Business interruption 10 Most Frequently Selected 7 Most Frequently Selected

Operational - Distribution or supply chain failure 5 Most Frequently Selected 14

Operational - Environmental risk 36 29

Operational - Failure of disaster recovery plan/business continuity plan 24 21

Operational - Property damage 11 10 Most Frequently Selected

Operational - Product recall 19 33

Operational - Third party liability 15 8 Most Frequently Selected


8.2: For each of the ten key risks identified for your organization, please tick whether a plan is in place or a formal review has been undertaken.


Corporate - Corporate social responsibility/sustainability 86% 69%

Corporate - Damage to reputation/brand 64% 56%

Corporate - Directors & Officers personal liability 60% 69%

Corporate - Failure to innovate/meet customer needs 71% 60%

Corporate - Growing burden and consequences of corporate governance/compliance 83% 58%

Corporate - Loss of intellectual property/data 80% 62%

Corporate - Failure to implement or communicate strategy 73% 56%

Corporate - Outsourcing 60% 62%

Corporate - Merger/acquisition/restructuring 75% 62%

Corporate - Joint venture failure 33% 50%

Crime/Security - Terrorism/sabotage 50% 68%

Crime/Security - Kidnap and ransom/extortion 60% 59%

Crime/Security - Crime/theft/fraud/employee dishonesty 76% 69%

External Factors - Climate change 25% 32%

External Factors - Commodity price risk 50% 53%

External Factors - Economic slowdown/slow recovery 40% 39%

External Factors - Globalization/emerging markets 25% 44%

External Factors - Increasing competition 56% 49%

External Factors - Natural resource scarcity/availability of raw materials 30% 51%

External Factors - Pandemic risk/health crises 100% 69%

External Factors - Political risk/uncertainties 36% 39%

External Factors - Regulatory/legislative changes 38% 53%

External Factors - Social media 69% 52%

External Factors - Sovereign debt 0% 46%

External Factors - Weather/natural disasters 69% 56%

External Factors - Accelerated rates of change in market factors and geopolitical risk environment 33% 44%

Financial - Asset value volatility 43% 53%

Financial - Capital availability/credit risk 64% 68%

Financial - Cash flow/liquidity risk 62% 71%

Financial - Counter party credit risk 62% 76%

Financial - Exchange rate fluctuation 66% 68%

Financial - Interest rate fluctuation 50% 66%

Financial - Pension scheme funding 100% 82%

Financial - Share price volatility 50% 55%

Human Capital - Absenteeism 25% 57%

Human Capital - Failure to attract or retain top talent 60% 60%

Human Capital - Harassment/discrimination 100% 63%

Human Capital - Inadequate succession planning 53% 51%

Human Capital - Injury to workers 86% 86%

Human Capital - Understaffing 25% 46%

Human Capital - Unethical behavior 62% 68%

Human Capital - Workforce shortage 23% 46%

Human Capital - Aging workforce and related health issues 47% 54%

IT - Computer crime/hacking/viruses/malicious codes 82% 82%

IT - Lack of technology infrastructure to support business needs 65% 71%

IT - Technology failure/system failure 89% 84%

Operational - Business interruption 65% 73%

Operational - Distribution or supply chain failure 57% 63%

Operational - Environmental risk 64% 74%

Operational - Failure of disaster recovery plan/business continuity plan 82% 68%

Operational - Property damage 68% 81%

Operational - Product recall 58% 66%

Operational - Third party liability 74% 73%


8.3: For each of the ten key risks identified for your organization, please tick those that have resulted in a loss of income in the past 12 months.


Corporate - Corporate social responsibility/sustainability 0% 3%

Corporate - Damage to reputation/brand 3% 7%

Corporate - Directors & Officers personal liability 12% 5%

Corporate - Failure to innovate/meet customer needs 38% 25%

Corporate - Growing burden and consequences of corporate governance/compliance 28% 21%

Corporate - Loss of intellectual property/data 5% 7%

Corporate - Failure to implement or communicate strategy 19% 19%

Corporate - Outsourcing 40% 20%

Corporate - Merger/acquisition/restructuring 17% 11%

Corporate - Joint venture failure 0% 18%

Crime/Security - Terrorism/sabotage 0% 4%

Crime/Security - Kidnap and ransom/extortion 0% 0%

Crime/Security - Crime/theft/fraud/employee dishonesty 70% 45%

External Factors - Climate change 25% 20%

External Factors - Commodity price risk 36% 40%

External Factors - Economic slowdown/slow recovery 51% 46%

External Factors - Globalization/emerging markets 12% 14%

External Factors - Increasing competition 53% 49%

External Factors - Natural resource scarcity/availability of raw 20% 22%

External Factors - Pandemic risk/health crises 0% 10%

External Factors - Political risk/uncertainties 28% 34%

External Factors - Regulatory/legislative changes 21% 28%

External Factors - Social media 6% 7%

External Factors - Sovereign debt 0% 18%

External Factors - Weather/natural disasters 52% 35%

External Factors - Accelerated rates of change in market factors and geopolitical risk environment 27% 25%

Financial - Asset value volatility 14% 23%

Financial - Capital availability/credit risk 14% 15%

Financial - Cash flow/liquidity risk 38% 20%

Financial - Counter party credit risk 55% 39%

Financial - Exchange rate fluctuation 44% 42%

Financial - Interest rate fluctuation 25% 18%

Financial - Pension scheme funding 33% 27%

Financial - Share price volatility 17% 23%

Human Capital - Absenteeism 50% 41%

Human Capital - Failure to attract or retain top talent 13% 18%

Human Capital - Harassment/discrimination 50% 26%

Human Capital - Inadequate succession planning 13% 5%

Human Capital - Injury to workers 54% 34%

Human Capital - Understaffing 25% 25%

Human Capital - Unethical behavior 38% 22%

Human Capital - Workforce shortage 8% 24%

Human Capital - Ageing workforce and related health issues 27% 21%

IT - Computer crime/hacking/viruses/malicious codes 4% 8%

IT - Lack of technology infrastructure to support business needs 60% 25%

IT - Technology failure/system failure 16% 17%

Operational - Business interruption 18% 22%

Operational - Distribution or supply chain failure 22% 20%

Operational - Environmental risk 27% 13%

Operational - Failure of disaster recovery plan/business continuity plan 0% 4%

Operational - Property damage 37% 36%

Operational - Product recall 31% 27%

Operational - Third party liability 35% 30%


8.4: Please indicate what you perceive the TOP FIVE KEY RISKS to your organization will be three (3) years from now (No other ranking or prioritization required)


Corporate - Corporate social responsibility/sustainability 22 20

Corporate - Damage to reputation/brand 4 Most Frequently Selected 5 Most Frequently Selected

Corporate - Directors & Officers personal liability 24 34

Corporate - Failure to innovate/meet customer needs 5 Most Frequently Selected 4 Most Frequently Selected

Corporate - Growing burden and consequences of corporate governance/compliance 22 10 Most Frequently Selected

Corporate - Loss of intellectual property/data 40 28

Corporate - Failure to implement or communicate strategy 14 17

Corporate - Outsourcing 40 39

Corporate - Merger/acquisition/restructuring 27 13

Corporate - Joint venture failure 45 Least Frequently Selected 44 Least Frequently Selected

Crime/Security - Terrorism/sabotage 43 Least Frequently Selected 42

Crime/Security - Kidnap and ransom/extortion 45 Least Frequently Selected 52 Least Frequently Selected

Crime/Security - Crime/theft/fraud/employee dishonesty 14 31

External Factors - Climate change 32 38

External Factors - Commodity price risk 9 Most Frequently Selected 8 Most Frequently Selected

External Factors - Economic slowdown/slow recovery 2 Most Frequently Selected 2 Most Frequently Selected

External Factors - Globalization/emerging markets 34 27

External Factors - Increasing competition 1 Most Frequently Selected 1 Most Frequently Selected

External Factors - Natural resource scarcity/availability of raw 34 40

External Factors - Pandemic risk/health crises 45 Least Frequently Selected 43

External Factors - Political risk/uncertainties 12 9 Most Frequently Selected

External Factors - Regulatory/legislative changes 9 Most Frequently Selected 3 Most Frequently Selected

External Factors - Social media 30 46 Least Frequently Selected

External Factors - Sovereign debt 51 Least Frequently Selected 48 Least Frequently Selected

External Factors - Weather/natural disasters 24 22

External Factors - Accelerated rates of change in market factors and geopolitical risk environment 30 28

Financial - Asset value volatility 45 Least Frequently Selected 45 Least Frequently Selected

Financial - Capital availability/credit risk 18 18

Financial - Cash flow/liquidity risk 18 13

Financial - Counter party credit risk 16 23

Financial - Exchange rate fluctuation 6 Most Frequently Selected 15

Financial - Interest rate fluctuation 38 37

Financial - Pension scheme funding 45 Least Frequently Selected 51 Least Frequently Selected

Financial - Share price volatility 45 Least Frequently Selected 49 Least Frequently Selected

Human Capital - Absenteeism 43 Least Frequently Selected 50 Least Frequently Selected

Human Capital - Failure to attract or retain top talent 8 Most Frequently Selected 6 Most Frequently Selected

Human Capital - Harassment/discrimination 51 Least Frequently Selected 53 Least Frequently Selected

Human Capital - Inadequate succession planning 24 32

Human Capital - Injury to workers 27 30

Human Capital - Understaffing 40 41

Human Capital - Unethical behavior 51 Least Frequently Selected 47 Least Frequently Selected

Human Capital - Workforce shortage 38 24

Human Capital - Ageing workforce and related health issues 18 25

IT - Computer crime/hacking/viruses/malicious codes 3 Most Frequently Selected 7 Most Frequently Selected

IT - Lack of technology infrastructure to support business needs 18 26

IT - Technology failure/system failure 9 Most Frequently Selected 20

Operational - Business interruption 12 12

Operational - Distribution or supply chain failure 6 Most Frequently Selected 19

Operational - Environmental risk 34 35

Operational - Failure of disaster recovery plan/business continuity plan 32 33

Operational - Property damage 27 16

Operational - Product recall 34 35

Operational - Third party liability 16 11


Major Risk Assessment

9: What is the primary method(s) you use to IDENTIFY the major risks facing your organization?


Structured enterprise-wide risk identification process 40% 46%

Board and/or management discussion of risk during annual planning, risk assessment or other processes 49% 63%

Senior management judgement and experience 63% 62%

Risk information from other function-led processes (e.g. internal audit, disclosure, compliance, etc.) 47% 54%

Industry analysis, external reports 34% 36%

Other 2% 3%

10: What is the primary method(s) you use to ASSESS the likelihood and potential impact of major risks?


Structured enterprise-wide risk assessment process supported by a standard toolkit and methodology 34% 40%

Board and/or management discussion of risk during annual planning, risk assessment or other processes 48% 56%

Senior management judgement and experience 63% 65%

Risk modeling / risk quantification analysis 23% 34%

Consult with external service provider/advisor 24% 32%

Other 1% 2%

11: How well do you feel your organization is prepared to identify, assess and manage current and emerging risks facing your organization? (Please rate on a 1 to 10 scale, 10 being the most prepared)


1 1% 1%

2 2% 1%

3 3% 3%

4 6% 5%

5 11% 10%

6 14% 14%

7 32% 32%

8 26% 25%

9 4% 7%

10 1% 2%

12: What is the primary method(s) your organization uses to determine what limits of insurance should be purchased?


Benchmark against peers 43% 47%

Industry claims data/large losses 33% 32%

Risk Modelling 28% 27%

Cost benefit analysis premium cost vs. limits purchased 46% 49%

Scenario analysis 28% 28%

Management judgement and experience 50% 59%

Rely on broker or independent consultant 53% 57%

Other 1% 3%

13: Which of the following elements of Total Cost of Insurable Risk do you measure?


Risk transfer costs (e.g. insurance premiums) 76% 77%

Risk retention costs (e.g. actual or expected retained losses funded within deductibles or self insurance vehicles such as a captive) 54% 55%

External risk management costs (e.g. professional fees paid to third parties for services related to risk management) 45% 37%

Internal risk management costs (e.g. internal expenses for all employees involved in the risk management and insurance function) 29% 28%

We are not measuring any of these elements of Total Cost of Insurable Risk 16% 16%


14: Have you completed a formal cyber risk assessment?


Yes 46% 42%

No 54% 58%

15: Have you experienced changes in your risk profile due to an ageing workforce?


Yes 24% 28%

No 76% 72%


Approach to Risk Management and Board Involvement

16: In the past two years, what have been the most important external drivers to strengthen risk management in your organization?


Increased focus from regulators 30% 38%

Economic volatility 39% 37%

Political uncertainty 11% 15%

Natural weather events 19% 17%

Demand from investors for greater disclosure and accountability 15% 20%

Pressure from customers 27% 26%

Pressure from competitors 27% 21%

Exposure from suppliers/vendors 17% 15%

Workforce issues 23% 15%

Large third party liability losses/litigation 18% 18%

Risk events/black swan events 14% 18%

Cyber threat environment 39% 22%

Random acts of violence 3% 2%

Globalization 8% 11%

Other 8% 8%

17: Has your Board of Directors or a Board Committee established policies on risk oversight and management?


Yes, formally 29% 43%

No 14% 16%

Partially/informally 40% 31%

Don't know 14% 8%

18: What methods do you utilize to evaluate the effectiveness of your risk management program?


Do not measure effectiveness 26% 29%

Lower Total Cost of Risk 43% 32%

Compare historical results from risk events against effectiveness of risk management programs 33% 36%

Compare historical results of safety and loss control programs (i.e. decreasing losses, faster return-to-work) 33% 31%

Identify/track involvement of risk management within organization 29% 34%

Evaluate opportunity cost associated with business investments that would not have been possible without risk management 12% 12%

Identify income generated or other financial/strategic benefits associated with a company captive 8% 9%

Other 7% 5%

19: To what extent do you feel your risk management programs assist your organization in establishing and delivering on your business objectives? (Please rate on a 1 to 5 scale, 5 being the highest)


1 8% 6%

2 12% 14%

3 45% 39%

4 26% 34%

5 9% 8%


Risk Management Department/Function

20: Does your organization have a Chief Risk Officer (CRO)?


Yes, but this role does not include insurance risk management 8% 11%

Yes, and this role includes insurance risk management 13% 17%

No, but we are considering creating this position 9% 8%

No, and we do not plan to create such a position 67% 59%

Don't know 3% 5%

21: Does you organization have a formal risk management/insurance department/function? (If you answer Yes, you will be taken to Q23)


Yes 69% 71%

No 31% 29%

22: Who handles risk management responsibilities? (You will now be taken to the next section)


Chief Executive, President 22% 26%

Chief Financial Officer 38% 33%

Treasurer 3% 5%

Legal 8% 4%

Human Resources 0% 2%

Safety/Security 5% 2%

Internal Audit 0% 4%

Risk Committee 3% 4%

Other 22% 20%

23: Where does risk management report in your organization?


Finance/Treasury/Chief Financial Officer 68% 49%

Company Secretary 0% 2%

General Counsel/Legal 9% 11%

Chief Risk Officer (CRO) 2% 8%

Chief Executive, President 9% 13%

Human Resources 1% 2%

Safety/Security 1% 1%

Internal Audit 0% 2%

Chief Administrative Officer 2% 2%

Controller 0% 2%

Other 7% 8%

24: What is the total number of people in your risk management/insurance department/function?


1-2 36% 45%

3-5 36% 31%

6-8 10% 8%

9-11 5% 5%

12-15 0% 3%

16-20 5% 2%

21-25 1% 1%

26-30 4% 1%

31-35 0% 0%

36-40 0% 0%

41+ 4% 3%


25: How involved is the Risk function in the following employee benefits management issues?

25.1: Benefits design


Not involved 65% 58%

Interested party with other functions 20% 19%

Stakeholder (involved in decisions) with other functions 10% 13%

Decision maker / authorization 4% 5%

Don't know 1% 5%

25.2: Financing & funding (pooling, captives)






Don't know 2% 5%

25.3: Delivery & administration






Don't know 0% 5%

25.4: Governance & compliance






Don't know 1% 4%

26: Does your organization plan to increase their focus on risk management with additional spend/resources on programs over the next 12 months?


No, decrease 7% 3%

No, stay the same 44% 44%

Unsure 21% 21%

Yes, marginally 25% 25%

Yes, significantly 2% 7%


Insurance Market

27: How important are the following to you in your choice of insurers? (Rank in order the following options from 1-10 with 1 being the most important. You may use each numeric choice only once)


Ability to execute and deliver risk finance support proximate to global locations 10 9

Capacity 6 5

Claims service & settlement 3 2

Coverage Terms and Conditions 1 1

Financial stability/rating 4 4

Flexibility/innovation/creativity 8 8

Industry experience 7 6

Long-term relationship 5 7

Speed and quality of documentation 9 10

Value for money / price 2 3

29: What changes would you like to see in the insurance market?


Broader coverage / better terms and conditions 62% 64%

Recognition of investments in internal risk management efforts through lower premiums 50% 50%

Increased capacity 21% 22%

More flexibility (i.e. underwriting, coverages, pricing) 65% 65%

More sophisticated claims information technology (IT) systems 36% 31%

Streamline/innovate underwriting process 31% 30%

Improved documentation accuracy and timeliness (policy issuances and endorsement processing) 39% 37%

More product innovation 30% 32%

More globally compliant and consistent coverage across multinational programs 20% 29%

Other 1% 4%


Risk Financing

30a: Please indicate the total limit purchased for Directors & Officers Liability insurance. (Please convert limits to US Dollar amount and enter full number.)


Minimum 100,000 50,000

Mean 72,196,949 60,059,122

Mode N/A 10,000,000

Maximum 625,000,000 1,129,000,000

30b: Please indicate the total limit purchased for Umbrella/Excess Liability insurance. (Please convert limits to US Dollar amount and enter full number.)


Minimum 100,000 50,000

Mean 114,657,033 111,596,700

Mode N/A 100,000,000

Maximum 700,000,000 1,500,000,000

31: Please indicate how the deductibles/retentions for your current programs have changed compared to the prior year: (Consider only the retention for any one loss. If multiple retentions apply, choose the one most reflective of your overall program.)

31.1: Workers Compensation / Employers Liability


Higher 9% 11%

Lower 3% 3%

Same 88% 86%

31.2: General Liability / Public Liability


Higher 14% 12%

Lower 4% 4%

Same 82% 84%

31.3: Products Liability (if separate)


Higher 9% 9%

Lower 5% 4%

Same 85% 87%

31.4: Auto / Motor Vehicle Liability (not Physical Damage)


Higher 7% 8%

Lower 4% 5%

Same 89% 86%

31.5: Directors & Officers Liability


Higher 13% 10%

Lower 3% 3%

Same 84% 87%

31.6: Professional Indemnity / Errors and Omissions


Higher 11% 11%

Lower 0% 3%

Same 89% 86%

31.7: Property (Property Damage and Business Interruption)


Higher 12% 16%

Lower 6% 6%

Same 82% 78%


32: Do you currently purchase cyber insurance coverage or do you plan to purchase in the next 12 months? (If you do not currently purchase cyber insurance, you will be taken to Q35)


Insurance currently purchased 37% 21%

Plan to purchase 21% 18%

Not purchased and no plans to purchase 43% 61%

33: Do you feel your terms and conditions for cyber coverage are sufficiently effective?


Yes 78% 78%

No 22% 22%

34: Do you feel your limits of liability for cyber coverage are sufficient?


Yes 47% 65%

No 53% 35%

35: Does your organization have or are you considering creating a captive insurance company or protected cell company (PCC)? (Select all that apply: If No Captive or PCC held, you will be brought to the next section)


Plan to create a new or additional captive or PCC in the next 3 years 2% 6%

Currently have an active captive or PCC 21% 18%

Have a captive that is dormant / run-off 1% 2%

Plan to close a captive in the next 3 years 4% 1%

No Captive or PCC 72% 74%

36: What is the primary reason for the captive?


Strategic Risk Management Tool 38% 32%

Control on Insurance Programs 17% 9%

Access to Reinsurance Market 12% 8%

Cost Efficiencies 12% 15%

Ability to Establish Reserves 0% 3%

Reduction of Insurance Premiums 8% 11%

Tax Optimization 0% 4%

Cashflow Optimization 4% 3%

Risk Finance Expense Optimization 4% 8%

Not Applicable 4% 3%

Other 0% 4%


37.1: What risks is your captive currently underwriting?


Auto Liability 23% 25%

Aviation 5% 7%

Catastrophe 18% 15%

Credit/Trade Credit 14% 7%

Crime/Fidelity 14% 15%

Cyber Liability/Network Liability 18% 8%

Directors & Officers Liability 14% 15%

Employee Benefits (Excluding Health/Medical and Life) 0% 7%

Employers Liability/Workers Compensation 36% 28%

Employment Practices Liability 5% 12%

Environmental/Pollution 18% 12%

Financial Products 0% 4%

General/Third Party Liability 55% 45%

Health/Medical 0% 7%

Life 0% 6%

Marine 23% 18%

Product Liability and Completed Operations 41% 27%

Professional Indemnity/Errors and Omissions Liability 14% 26%

Property (Property Damage and Business Interruption) 64% 59%

Terrorism 18% 12%

Third-Party Business 18% 10%

Owner Controlled Insurance Program/Contractor Controlled Insurance Program 9% 5%

Sub-contractor default insurance 0% 2%

Warranty 0% 4%


37.2: Looking forward over the next five years, please identify what risks you plan to continue to underwrite in your captive along with any new risks you plan to underwrite.


Auto Liability 35% 32%

Aviation 4% 6%

Catastrophe 17% 19%

Credit/Trade Credit 17% 15%

Crime/Fidelity 22% 22%

Cyber Liability/Network Liability 43% 23%


Employee Benefits (Excluding Health/Medical and Life) 17% 18%

Employers Liability/Workers Compensation 48% 31%

Employment Practices Liability 17% 19%

Environmental/Pollution 17% 19%

Financial Products 0% 4%

General/Third Party Liability 61% 47%

Health/Medical 4% 13%

Life 4% 8%

Marine 35% 23%

Product Liability and Completed Operations 43% 26%

Professional Indemnity/Errors and Omissions Liability 17% 30%


Terrorism 17% 14%

Third-Party Business 22% 12%

Owner Controlled Insurance Program/Contractor Controlled Insurance Program 13% 8%

Sub-contractor default insurance 0% 3%

Warranty 4% 8%


Global Insurance Program

38: Do you purchase/control insurance for most of your operations where you operate? (Select one)


No, each operation buys its own insurance with no coordination from corporate headquarters 12% 10%

Corporate headquarters controls some lines and leaves local office to purchase other lines 48% 40%

Corporate headquarters controls procurement of ALL insurance programs (global/local) 33% 41%

Don't know 7% 8%

39: If Corporate headquarters purchases programs with global and local policies, which line(s) of coverage do you purchase in this style:



General Liability/Public Liability 72% 81%

Auto/Motor Vehicle Liability 36% 42%

Workers Compensation/Employers Liability 51% 48%


Crime 38% 42%

Marine/Ocean Cargo 57% 49%

Trade Credit 17% 17%

Product Recall and Contamination 17% 18%

Don't know 4% 2%

Other 6% 11%

40: If Corporate headquarters purchases "programs" with global policies issued to parent and local policies issued to local operations, please rate the following from 1 - 10 in terms of importance to purchasing decision. (1 representing the highest priority)


Cost - This approach is more economical 3.7 4.1

Certainty of Coverage - Knowledge of what coverage is included in the program 3.6 3.9

Statutory Compliance - Access to local admitted coverage where nonadmitted is prohibited 4.0 4.2

Fiscal Compliance - Ability to pay insurance premium and related taxes 4.7 4.8

Program Performance - Access to local claims and/or other services from local insurer/policy provider 5.0 4.8

Accounting - Ability to allocate risk transfer costs to local operations vs. pay from corporate 5.9 5.3
