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Increasing Regulation and Economic Volatility Key Catalysts for Risk Management in the Food System, Agribusiness and Beverage Industry, Says Report from Aon Analytics
Date:8/1/2009

b> where coverage terms and conditions; carriers requested to quote; submit-to-quote, quote-to-bind and submit-to-bind ratios; top carriers in a competitive bid situation; changes in premium rates over the past year and the most common reasons for carriers not quoting and clients rejecting a carrier's quote are addressed.

For example, risk professionals in the food system, agribusiness and beverage industries cited commodity price volatility, weather/natural disasters and product recall as the leading industry risks. In addition, the report finds that many firms are not prepared to deal with increasing regulation, such as tougher food safety laws proposed by the current U.S. administration, and that many companies do not have comprehensive risk management processes in place, opting instead to rely on senior management intuition and experience as a primary method for identifying major risks.

"Companies in the U.S. food system are faced with more complex risks today than ever before, and it is vital for them to fully understand these exposures so they can make informed and insightful decisions," said Rick Shanks, national managing director of Aon's food system, agribusiness and beverage practice. "This report demonstrates our commitment to empowering our clients with fact-based insight and leveraging the size and scope of Aon's unmatched global network to generate industry-leading comprehensive analyses."

With regard to insurance pricing, food system, agribusiness and beverage organizations have generally been experiencing rate decreases for casualty, property and directors' and officers' liability coverage. That said, property rates have shown some hardening in 2
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SOURCE Aon Corporation
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