Research carried out by MSM Risk Management found that 98% of those surveyed believed current premiums were not fully accurate.

Of the 98% of risk and underwriting professionals who believed corporate premiums might not be correct, 72% believed they could be too low, meaning insurers could be compromising vital competitive advantage and profits. The survey also found that many, commercial clients faced being significantly underinsured leaving their businesses vulnerable in the event they need to make a claim.

Thomas Coles, managing director of MSM Risk Management, said; “We have always known that disparate, outmoded systems are preventing insurers from undertaking effective risk engineering, but we were quite shocked by the scale of these results.

“There are often anomalies between different systems used by insurers, brokers and risk engineers for example, meaning that data is being transferred from one system to another and is not accessible to all risk professionals with a stake in the process. This is not only time-consuming but also introduces the possibility of certain information being lost in translation.”