More companies have started to rely on brokers or independent consultants as the primary source to assist them in determining what limits of insurance to buy, according to Aon’s 2011 Global Risk Management Survey.

The biennial report of nearly 1000 business professionals from 58 countries finds that 34% of respondents in 2011 use brokers or independent consultants, up from 23% in 2007.

“This is a positive trend, as brokers or independent consultants typically would take a comprehensive approach, utilising a combination of benchmarking and analytical tools and methods to advise their clients on the optimal limits to purchase,” the report says.

Smaller companies are more likely to use brokers while larger companies favour a combined approach with an emphasis on quantitative analysis or metrics. In the Asia-Pacific region 30% of respondents – the majority – rely on a broker or independent consultant, but this figure is lower than 39% in Europe and 33% in North America.

When choosing an insurance carrier, financial stability was again cited as the most important factor, consistent with the previous two surveys. Aon says this illustrates that “concerns for competitive pricing are still tempered by an interest in dealing with carriers who have the financial capacity to pay claims”.

But value for money ranked second when choosing an insurer, reflective of the tough economic climate.

It was followed closely by claims services and industry experience at three and four, but prompt settlement of large claims was the biggest mover on the list, jumping from ninth in 2009 to fifth.

The results show this was primarily driven from regions excluding North America, probably due to the higher than average natural catastrophe losses that occurred in 2010.

The ability of insurers to deliver a global program ranked at ninth, but looking solely at respondents with offices in more than six countries, it ranked second in importance, ahead of price and only behind financial stability.

Broader coverage and better terms and conditions topped the list of the desired changes business leaders would like to see in the insurance market, but in the Asia-Pacific region recognition of investments in internal risk management efforts through lower premiums was the top ranked improvement wanted.

In terms of insurance pricing, the majority of respondents say they renewed at flat to single digit decreases in rates overall. Directors’ and officers’ (D&O) and property experienced the greatest levels in rate reductions globally.

The survey found that the rise of the chief risk officer has continued, with the position existing in 31% of respondent firms this year, up from 25% in 2009, which Aon says illustrates the “emerging acceptance of risk management as a core function of business success”.

However, that rise may be about to come to a grinding halt: 60% of firms do not have a chief risk officer and say they have no plans of appointing one – a slight fall from 62% in 2009.

Chief risk officers were typically more common in larger businesses, and in highly regulated sectors such as banking, utilities, telecommunications and broadcasting.

70% of businesses surveyed have a formal risk management department, down from 78% in 2009, the first time in the survey’s history that a decline has been recorded. Aon says the change could be attributable to the profile of survey respondents, as this year’s survey featured a higher proportion of smaller firms which are less likely to have a formal risk management department.

But despite the economic slowdown, risk management staffing levels have remained stable, though off a low base, at fewer than five employees for the majority of respondents. Banks have the largest risk management departments with 35% of banks having more than 15 risk management staff.