How mature is the Risk Management profession in Italy?
Enterprise risk management in Italy is something we can relate to a small elite of customers. Their priority when it comes to implementing ERM is to create benefi ts for the company, to protect their reputation, avoid and minimise losses, and to reduce volatility.
These companies represent innovation and best practice in the Italian risk management world. There is no gap between these companies and their peers globally. This is demonstrated by the fact that a person like Jorge Luzzi (head of group risk management, Pirelli) is today chairman of Ferma.
Although the likes of Luzzi are not entirely representative of the Italian market yet, importantly the country does realise the need to put risk management at the heart of their objectives.
What are the key risk management challenges facing these large, sophisticated Italian companies?
Italy is a country that faces economical and political challenges, so globalisation is a must for Italian companies in order to stay competitive. These companies consider ERM a true priority. They are expected to foresee and identify and manage their key risks. And they know that their brand and reputation is a key asset.
They are also under pressure from increasing governance requirements and potential sanctions for non-compliance. This is particularly important in the area of insurance. On paper it’s easy enough to buy insurance in one place and cover all your risks all over the world. But in reality this requires a really in-depth know-how of the various laws within each territory to avoid breaking regulations.
Italy is a country that faces economical and political challenges, so globalisation is a must for Italian companies in order to stay competitive. - Saverio Longo
Bearing in mind that Italian companies are looking to expand internationally, how can Zurich leverage its own global network to help them? This is part of the DNA of Zurich, to be global, to be international, together with the fact that we tend to push the boundaries of what’s insurable. Certainly we are in a good position to offer clients international programmes and not only in the traditional property and liability lines. We now offer every type of product as a global programme, including financial lines, crime, fidelity and even motor.
Our presence in over 180 countries comes with a huge investment; but being able to follow our customers wherever they are in the world is a great advantage. You can’t underestimate the value of having local counterparties who understand the local culture and speak the local language. Our international programmes are more than just a product, they are central to our value proposition for our multinational customers.
I think that the biggest advantage is the fact that our customers have certainty that their policy will comply with applicable country tax and insurance regulations. Customers will also have certainty that their claims will be paid properly.