19 February 2008 | Paul Snell
Transport and logistics firms in Europe are failing to focus on the biggest areas of risk, according to a study.
A report from insurance firm Marsh found that although 70 per cent of firms take professional advice about risk management, most of that guidance is not targeted at the three areas that are potentially most damaging: contractual risk, regulatory risk and reputation/brand risk.
The study also revealed companies that have experienced a large loss buy insurance cover five times higher than those firms that have not. The average cover purchased by those who had not suffered a loss was ?32 million (£24.1 million), and the average limit by those that had was ?157 million (£119 million).
Marsh said firms are now not only looking for the cheapest deals, as those with experience of big losses consistently buy the same amount of coverage each year.
Brian Sullivan, transportation and logistics industry practice leader for Marsh, said in a statement: "The risk landscape for transport and logistics companies is becoming more varied and complex, so the need for companies to have comprehensive risk management programmes has never been greater, not least to minimise the impact of insurance premiums."