Insurance providers need to move away from a "silo" mentality towards tailored and evolving insurance solutions, an Aon risk chief has warned.
Aon national manager client research and development Ross Caste addressed delegates at Aon's advanced risk financing conference in Melbourne.
"Risk concerns have evolved from physical risks towards more tactical concerns and are becoming global in nature - such as brand and reputation, business dependency, constant drive for innovation and competitive market challenges," he said.
"This is where risk financing comes in. Good risk financing means having well thought through plans that anticipate and manage the challenges of navigating the ever changing risk climate.
"The aim should be to minimise total cost of insurable risk - the aggregation of annual insurance premiums and retained claims.
Aon Global Risk Consulting chief executive Stephen Cross said an organisation's attitude towards risk was very important, be it aggressive, averse or complacent.
"It's a risky world that we live in. And the landscape of risk is constantly changing," Cross said.
"Our systems are far more vulnerable now than they ever have been. Pandemic and terrorism are major threats.
"Ocean temperatures are higher and category 4 and 5 hurricanes have doubled over the last 30 years," he concluded.
Risk management is more than just insurance, he concluded.
