“Innovation has to be the industry’s top priority and if the risk industry is losing ground we have to look to ourselves. We can’t blame someone else. We have to ask, what are we doing to raise awareness of how risk is changing and the true trade off of risk for a company?
Speaking on a panel focused on Living and working in a riskier world at this year’s FERMA forum, Mr. McGavick said: “You have to invest to innovate. Our payroll is our research budget. Our job is to look at the challenges out there in the world and the extraordinary amounts of information available and apply an insurance mindset to convert our knowledge into a product and solution.”
Mr. McGavick continued by urging the risk management community to continue to work closely with insurers to develop the new insurance products needed to support businesses as they advance into the future.
As advancements in the area of technology enable new business trends from big data to automation, these affect practically every industry as companies seek to capture the power of technology to support growth. A recent McKinsey Global Institute paper highlights the stunning pace of technology change, innovation, and business adoption and how specific technology has had an economic impact ranging from USD 10 trillion to USD 20 trillion annually in 2025.
“But with growth and expansion comes increased risk” Mr. McGavick said. He continued: “Complex, interconnected supply chains and the collection and storage of information in data houses in areas of the world prone to natural hazards, are just some of the issues challenging risk managers and insurers.”
Mr. McGavick continued: “We can’t just stand on the sidelines or be on their heels, we have to be out in front, spotting the risks and providing the solutions. That’s why forums like FERMA are so important; only through close interaction with risk managers can we truly get a handle on the needs of their businesses. Such forums also allow the industry to share its thoughts with other insurers because this requires a collective response. The whole insurance industry has to step up to provide the capacity needed and the products required.”
About XL Group plc’s Insurance Operations
XL Group plc’s insurance companies offer property, casualty, professional and specialty insurance products globally. Businesses that are moving the world forward choose XL as their partner. To learn more, visit xlgroup.com/insurance.
About XL Group plc
XL Group plc (NYSE:XL), through its subsidiaries, is a global insurance and reinsurance company providing property, casualty and specialty products to industrial, commercial and professional firms, insurance companies and other enterprises throughout the world. XL is the company clients look to for answers to their most complex risks and to help move their world forward. To learn more, visit xlgroup.com