A recently published ebook and risk survey by insurance broker and risk management specialist Marsh Commercial examines business risks the UK’s tech sector companies must address.
The UK’s tech sector is described by Marsh Commercial as a “powerhouse of ideas and invention”, that coped reasonably well with the coronavirus pandemic uncertainties of 2020 and is generally well-placed for the future. That said, it faces various risks highlighted in the firm’s ebook, The State of UK Tech Risk 2020. The ebook includes a survey of UK tech businesses which focuses on the operational risks and liabilities they fear the most.
The sector is a major contributor to the UK economy and has a significant presence in the Thames Valley. “The UK is third after the US and China for tech unicorn companies (valued in excess of £1 billion). And the Thames Valley is one of the key regions where we are seeing growth,” observed Lee Gwilliam, senior vice president at Marsh Commercial.
The top three worries for tech bosses are: data security and privacy, IT resiliency, and also technology errors and omissions. A key emerging risk is a failure of the Internet of Things (IoT) that digitally links physical objects and devices.
IoT failure threatens both businesses and individuals by combining not only the risk of cyber breaches, but also the danger of compromising physical assets. “Tech companies need to think about blending cyber and physical risks in their overall risk management planning,” Gwilliam urged.
Other significant risks include keeping on top of changes to the legislative and regulatory environment, as well as understanding your personal liabilities should things go wrong. “The insurance industry is currently in a cycle where it is restricting capacity for directors’ and officers’ cover. So, making sure your business has a sound, workable risk management plan is more important than ever,” Gwilliam advised.
Marsh Commercial has around 2,400 mainly start-up and mid-market technology clients in the UK, with many located in the Thames Valley. A 40-strong team based in Reading and Swindon includes tech sector risk management experts.
“We attract clients who are looking for value rather than price alone,” noted Gwilliam. “We look at the total cost of risk and ways to reduce it, and we think creatively about how best to support clients.”
An example of Marsh Commercial’s creative approach in the current challenging market environment is designing insurance programmes that bring together multiple insurers, who spread the risk of insuring individual clients. “This is quite innovative for the size of businesses we advise,” Gwilliam pointed out. “It’s something you’d expect with large multinational clients, but we can offer the same service to companies with turnover below £50 million.”
Marsh Commercial are able to call on the global risk management expertise of their parent company, Marsh, and its extensive pool of risk data. “We use data analytics to advise on the best insurance programme and continuity plan for clients,” said Gwilliam.
As all business sectors look to recover from the impact of the Covid-19 pandemic, another significant risk area many companies face is around their employees, particularly keeping hold of key personnel.
“Our risk solutions aim to mitigate the cost of losing employees and we also offer bespoke employee benefit packages that help companies in the tech sector continue to grow by attracting and retaining staff,” said Gwilliam. “We also advise on dealing with Covid-19 in the workplace and supply testing kits, through our sister company, Mercer Marsh Benefits.”
Looking ahead, Marsh Commercial expects to produce more bespoke risk management solutions for its clients. “We make risk planning relevant to our clients’ industry sectors and aim to be their trusted partner,” Gwilliam emphasised.
Download The State of UK Tech Risk 2020 here.
Contact Lee Gwilliam:
07971 170 922
lee.gwilliam@marshcommercial.co.uk
This is a Marketing Communication
Marsh Commercial is a trading name of Jelf Insurance Brokers Ltd which is authorised and regulated by the Financial Conduct Authority (FCA). Not all products and services offered are regulated by the FCA (for details see https://www.marshcommercial.co.uk/info/regulation/). Registered in England and Wales number 0837227. Registered Office: 1 Tower Place West, London EC3R 5BU.
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