Comcover Information Bulletin

Insurable Risk Profiling

Issue 40 – August 2012

Information Bulletin No 40 | 1

Background

Comcover’s Insurable Risk Profiling (IRP) program assists Fund Member agencies to enhance their understanding of insurable risk exposures and to accurately disclose their insurance requirements to Comcover.

Insurable Risk Profiling

IRP is a review and analysis technique that identifies the insurable risk exposures of individual Fund Memberagencies. The process specifically focuses on the collection and evaluation of agency data. The analysis of this data provides useful information about the insurable risk exposures, enabling both the Fund Member agency and Comcover to ensure adequate insurance coverage. The principles underpinning IRP are aligned with the Risk Management Standard, AS/NZS/ISO 31000:2009.

Insurance Gap Analysis

As part of the IRP analysis, an Insurance Gap Analysis is also conducted which identifies the ‘gap’ between anagency’s insurance coverage and its insurable risk profile. The benefits of comparing an agency’s insurable risk profile with its insurance gap analysis are:

  • determining anagency’s insurable risk profile and its insurance needs;
  • access to a greater level of information enabling agencies to design their insurance program to match their insurable risk profile; and
  • the opportunity for the identification of adequate mitigation strategies for potential unfunded loss exposures that might be identified during the IRP process.

Process

There are three key steps to the IRP process:

  1. The drafting of a report (including data collection and review) by Comcover Member Services;
  2. Validation of an agency’s IRP report by the agency; and
  3. Sign-off, by the agency’s Executive, of the agency’s insurable risk profile and insurance gap analysis report.

Following clearance by the Fund Member agency, the IRP information is included in Comcover’s Portfolio Risk Matrix (PRM). The PRM enables Comcover to analyse the Individual property and liability risks which may have an aggregating effect (i.e. risks that can affect a number of Fund Members, or risks that could occur at the same time), or have a catastrophic effect on the Fund. Undertaking this level of analysis provides Comcover with valuable information for determining the annual premium pool. For example, by being able to more accurately estimate reserves required by the Fund, Comcover can ensure that agency premiums more accurately reflect the level of risk to the Fund.

Further Information

For further information on the IRP program, please contact Comcover Member Services on:

  • 1800 651 540; or
  • email: .

Information Bulletin No 40 | 1