This survey followed previous benchmarking surveys conducted in 2005 and 2008 which were mainly targeted at banks and financial sector infrastructure providers. The report states that the FSA developed a specific survey for the insurance sector in response to requests from the insurance industry. Nineteen insurance companies took part in the survey representing approximately 40% of total net written insurance premiums in the UK.
The survey for the insurance sector was developed to provide an initial assessment of how prepared the insurance sector is for major operational disruptions (such as severe weather, a flu pandemic or a terrorist attack). The survey focused on the resilience of the insurance sector if faced with such a disruption, the speed with which it could recover and any steps necessary to improve resilience.
The report found that firms were making good preparations for dealing with disruptions but needed to work more on certain areas, such as recovery timeframes, security and risk assessments.
The report noted that firms should use the findings to review the areas highlighted and make any necessary changes to ensure they are satisfied that their internal plans and procedures are robust and their firm’s resilience and recovery capability is fully consistent with the needs of their business activities.
