Poll: the economic slowdown are the risks to policyholders T

ORLANDO, Fla., Apr 21, 2009 (A. M. Best via COMTEX) The economic downturn is the top risk on the minds of risk managers, according to a survey by broker and consulting firm Aon Corp. (NYSE: AOC).

The 2009 Global Risk Management Survey found companies view the current economic slowdown, regulatory and legislative changes and business interruption as their top risks.

The survey results were unveiled at the annual Risk and Insurance Management Society's conference. The biennial analysis is based on responses from 551 organizations in 40 countries.

While no company is immune to being impacted by the economic downturn, companies should not consider cutting back resources for their risk managers, said Stephen Cross, chief executive officer of Aon Global Risk Consulting. To do so may cost companies more in the long run, he said.

"If I was to take a long-term view on what our clients should be investing in, that would be around data and continued risk management techniques," Cross said during an interview at RIMS. "If there?s a drawback from that -- and it?s an obvious area in which to cut -- we would see an increase in severity and volume of injuries to employees, but there?s also a massive risk about losing very, very valuable data."

Insurance companies use data from their clients to help set rates and write policies.

"The investment in data and control of data over the long-term will help you set and improve your rating structures in years to come," Cross said.

The survey was conducted last fall, but in light of the turmoil in the marketplace, Aon did a follow up survey in April. That survey found the biggest consideration clients have when choosing an insurance company is the financial strength of the insurer, Cross said.

(By Meg Green, senior associate editor, BestWeek: Meg.Green@ambest.com)