Insurance Compliance (again)

An underlying theme of many recent posts has been insurance compliance. Time and time again, I have said that insurance companies will be the primary driving force behind the widespread adoption of BCP programs. The Civil Contingencies Bill, a piece of UK legislation we talked about earlier in the year is now nearing its passage through parliament (a fact I read about in this article). One of the key areas this Bill mandates is the need for all companies to adopt BCP plans in order to maintain lower insurance premiums. It is also interesting to note that the adoption of BCP programs will also be driven by new legislation within the European Union:

Many insurance companies now request details about their client company’s business continuity provisions as part of their audit process. Where there is found to be no viable continuity plan, the client’s insurance premiums may rise as a direct consequence. This, together with the fact that forthcoming European Union legislation requires every company, regardless of size, to have some form of continuity plan, means that demand for business continuity services is bound to rise.

I also found the following quote particularly relevant:

Disasters, fires, bombs and rivers which burst their banks don’t have to directly affect your premises to wreck your businesses. Emergency services routinely cordon off entire areas surrounding the impact point and bar all-comers from gaining access to their vital business records.

It was just yesterday morning in the middle of rush hour when a dramatic hostage-taking incident unfolded in the very heart of Toronto's financial district. The entire financial core was cordoned off while the drama unfolded.

Despite the need for companies to comply, BCP adoption rates remain slow. Nothing like the love of the mighty buck (or pound sterling as the case may be), however, that can make executives take notice and put their plans into high gear.