Flevy Management Insights Q&A

In what ways can ISO 22301 certification influence a company's ability to secure insurance and negotiate premiums?

     Joseph Robinson    |    ISO 22301


This article provides a detailed response to: In what ways can ISO 22301 certification influence a company's ability to secure insurance and negotiate premiums? For a comprehensive understanding of ISO 22301, we also include relevant case studies for further reading and links to ISO 22301 best practice resources.

TLDR ISO 22301 certification bolsters an organization's insurance negotiation leverage by showcasing enhanced risk management, operational resilience, and a commitment to continuous improvement, leading to potentially lower premiums and favorable terms.

Reading time: 5 minutes

Before we begin, let's review some important management concepts, as they relate to this question.

What does Business Continuity Management Systems (BCMS) mean?
What does Risk Management mean?
What does Operational Resilience mean?
What does Continuous Improvement mean?


ISO 22301 certification, which focuses on Business Continuity Management Systems (BCMS), plays a critical role in how organizations prepare for, respond to, and recover from disruptive incidents. This certification can significantly influence an organization's ability to secure insurance and negotiate premiums by demonstrating a commitment to risk management, operational resilience, and continuous improvement. Below, we explore the specific ways in which ISO 22301 certification impacts insurance negotiations and premiums, supported by insights from leading consulting and market research firms.

Enhanced Risk Profile

Organizations with ISO 22301 certification often benefit from an enhanced risk profile. Insurance companies assess risk based on the likelihood of a disruptive event occurring and the potential financial impact of such events. Organizations certified in ISO 22301 have proven their commitment to identifying potential threats, assessing their impact, and implementing effective risk mitigation strategies. This process significantly reduces the likelihood and potential impact of disruptions, making these organizations more attractive to insurers. For example, a study by PwC highlighted that organizations with robust Business Continuity Plans, akin to those required for ISO 22301 certification, could negotiate lower insurance premiums due to their reduced risk profile.

Moreover, the certification process involves a thorough external audit by an accredited body, which adds an additional layer of credibility to the organization's risk management practices. Insurers recognize this external validation and are more likely to offer favorable insurance terms to certified organizations. This is because the rigorous audit process associated with ISO 22301 certification provides insurers with assurance that the organization's risk management and business continuity practices are both comprehensive and effective.

Additionally, ISO 22301 certification requires organizations to engage in continuous improvement, ensuring that their Business Continuity Management Systems evolve in line with emerging threats and business changes. This ongoing commitment to enhancing resilience further solidifies an organization's risk profile, making it an even more attractive proposition for insurers.

Are you familiar with Flevy? We are you shortcut to immediate value.
Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab

Operational Resilience and Recovery Capabilities

ISO 22301 certification also emphasizes the importance of operational resilience, which directly impacts an organization's ability to recover from disruptions swiftly. This resilience is critical for insurers, as the faster an organization can return to normal operations following a disruption, the lower the financial impact and, consequently, the lower the risk to the insurer. For instance, Accenture's research on operational resilience underscores the correlation between swift recovery capabilities and reduced financial losses in the event of a disruption, which in turn influences insurance premium calculations.

The certification requires organizations to have documented and tested Business Continuity Plans (BCPs) that detail specific steps for responding to and recovering from various types of disruptions. These plans are periodically reviewed and tested to ensure their effectiveness, providing insurers with confidence in the organization's recovery capabilities. This confidence often translates into more favorable insurance terms, as insurers are reassured that the organization is well-prepared to handle disruptions with minimal financial impact.

Furthermore, ISO 22301 certification encourages organizations to develop a culture of resilience, where employees are trained and aware of their roles in maintaining business continuity. This cultural aspect further enhances an organization's recovery capabilities, as well-prepared and informed employees are more likely to respond effectively to disruptions. Insurers recognize the value of a resilient culture and often reflect this in the insurance terms offered to certified organizations.

Competitive Advantage in Insurance Negotiations

Obtaining ISO 22301 certification provides organizations with a competitive advantage during insurance negotiations. Certified organizations can leverage their certification as evidence of their superior risk management and business continuity practices, positioning themselves as lower-risk clients in the eyes of insurers. This advantage can be instrumental in negotiating lower premiums or more favorable coverage terms. For example, a survey conducted by KPMG found that organizations with recognized certifications in risk management and business continuity, such as ISO 22301, were able to secure more competitive insurance terms compared to non-certified counterparts.

In addition to negotiating power, ISO 22301 certification can also facilitate access to a broader range of insurance products and services. Some insurers offer specialized insurance products tailored to organizations with proven risk management and business continuity practices. These products often come with enhanced coverage options and additional support services, such as crisis management and incident response consulting, which are particularly valuable in the wake of a disruption.

Lastly, the process of achieving and maintaining ISO 22301 certification fosters a deeper understanding of the organization's risk landscape, which can be beneficial during insurance negotiations. Certified organizations are better equipped to articulate their risk management strategies and business continuity plans, demonstrating their understanding and commitment to minimizing risk. This level of insight and preparedness can significantly influence the outcome of insurance negotiations, leading to more favorable terms and premiums.

ISO 22301 certification offers a multitude of benefits that extend beyond operational resilience, directly impacting an organization's ability to secure insurance and negotiate premiums. Through enhanced risk profiles, demonstrated operational resilience, and a competitive advantage in insurance negotiations, certified organizations are well-positioned to achieve favorable insurance terms. This certification not only signifies an organization's commitment to business continuity and risk management but also serves as a strategic asset in the increasingly complex landscape of corporate insurance.

Best Practices in ISO 22301

Here are best practices relevant to ISO 22301 from the Flevy Marketplace. View all our ISO 22301 materials here.

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.

Explore all of our best practices in: ISO 22301

ISO 22301 Case Studies

For a practical understanding of ISO 22301, take a look at these case studies.

ISO 22301 Business Continuity Management System Implementation for a Global Financial Firm

Scenario: A global financial firm is seeking to implement an ISO 22301 Business Continuity Management System (BCMS) to ensure its ability to continue critical business operations during unforeseen disruptions.

Read Full Case Study

Business Continuity Management Implementation for a Global Financial Institution

Scenario: A global financial institution is faced with the challenge of ensuring business continuity amid increasing geopolitical risks and cyber threats.

Read Full Case Study

Business Continuity Strategy for Retail Firm in Competitive Market

Scenario: A prominent retail company specializing in high-end consumer electronics faces challenges aligning its operations with ISO 22301 standards.

Read Full Case Study

ISO 22301 Business Continuity Strategy for Life Sciences in North America

Scenario: A firm in the life sciences sector, specializing in biotechnological advancements, faces challenges aligning its operations with ISO 22301 standards.

Read Full Case Study

Business Continuity Management for Power & Utilities Firm

Scenario: A leading firm in the power and utilities sector is seeking to enhance its business continuity management in line with ISO 22301 standards.

Read Full Case Study

Business Continuity Management for Power Utility in Competitive Market

Scenario: A regional power and utility company is grappling with aligning its operations to the stringent requirements of ISO 22301.

Read Full Case Study


Explore all Flevy Management Case Studies

FREE DOWNLOAD
Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more.

Download this Free Presentation

Related Questions

Here are our additional questions you may be interested in.

What strategies can companies employ to ensure employee engagement and compliance with ISO 22301 standards?
Companies can ensure employee engagement and compliance with ISO 22301 by fostering a Culture of Preparedness, providing comprehensive Training and Awareness programs, and leveraging Technology and Tools for enhanced compliance and resilience. [Read full explanation]
How does ISO 22301 guide the recovery time objective (RTO) and recovery point objective (RPO) setting process?
ISO 22301 provides a framework for Business Continuity Management, guiding organizations in setting realistic Recovery Time Objectives (RTO) and Recovery Point Objectives (RPO) through Business Impact Analysis, strategic planning, technology use, and continuous improvement. [Read full explanation]
What metrics are most effective for measuring the performance of an ISO 22301-compliant business continuity plan?
Effective metrics for ISO 22301-compliant Business Continuity Plans include Recovery Time Objective (RTO), Recovery Point Objective (RPO), Incident Response Time and Effectiveness, and Business Impact Analysis (BIA) Conformance, all critical for evaluating resilience and recovery capabilities. [Read full explanation]
What role does technology play in facilitating the implementation and maintenance of ISO 22301 standards?
Technology enhances ISO 22301 compliance by automating Business Continuity Management, improving Communication and Collaboration, and enabling Continuous Monitoring and Improvement for Operational Excellence. [Read full explanation]
How is digital transformation influencing the evolution of ISO 22301 standards?
Digital Transformation is driving the evolution of ISO 22301 standards by integrating advanced technologies and methodologies into Business Continuity Management Systems, enhancing organizational resilience and agility. [Read full explanation]
How does ISO 22301 facilitate a culture of resilience within organizations?
ISO 22301 fosters organizational resilience through Strategic Alignment, Employee Engagement, and Continuous Improvement, ensuring readiness against disruptions and sustaining long-term success. [Read full explanation]

 
Joseph Robinson, New York

Operational Excellence, Management Consulting

This Q&A article was reviewed by Joseph Robinson. Joseph is the VP of Strategy at Flevy with expertise in Corporate Strategy and Operational Excellence. Prior to Flevy, Joseph worked at the Boston Consulting Group. He also has an MBA from MIT Sloan.

To cite this article, please use:

Source: "In what ways can ISO 22301 certification influence a company's ability to secure insurance and negotiate premiums?," Flevy Management Insights, Joseph Robinson, 2025




Flevy is the world's largest knowledge base of best practices.


Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.




Read Customer Testimonials

 
"As a young consulting firm, requests for input from clients vary and it's sometimes impossible to provide expert solutions across a broad spectrum of requirements. That was before I discovered Flevy.com.

Through subscription to this invaluable site of a plethora of topics that are key and crucial to consulting, I "

– Nishi Singh, Strategist and MD at NSP Consultants
 
"One of the great discoveries that I have made for my business is the Flevy library of training materials.

As a Lean Transformation Expert, I am always making presentations to clients on a variety of topics: Training, Transformation, Total Productive Maintenance, Culture, Coaching, Tools, Leadership Behavior, etc. Flevy "

– Ed Kemmerling, Senior Lean Transformation Expert at PMG
 
"The wide selection of frameworks is very useful to me as an independent consultant. In fact, it rivals what I had at my disposal at Big 4 Consulting firms in terms of efficacy and organization."

– Julia T., Consulting Firm Owner (Former Manager at Deloitte and Capgemini)
 
"As a small business owner, the resource material available from FlevyPro has proven to be invaluable. The ability to search for material on demand based our project events and client requirements was great for me and proved very beneficial to my clients. Importantly, being able to easily edit and tailor "

– Michael Duff, Managing Director at Change Strategy (UK)
 
"As an Independent Management Consultant, I find Flevy to add great value as a source of best practices, templates and information on new trends. Flevy has matured and the quality and quantity of the library is excellent. Lastly the price charged is reasonable, creating a win-win value for "

– Jim Schoen, Principal at FRC Group
 
"As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value."

– David Coloma, Consulting Area Manager at Cynertia Consulting
 
"As a consultant requiring up to date and professional material that will be of value and use to my clients, I find Flevy a very reliable resource.

The variety and quality of material available through Flevy offers a very useful and commanding source for information. Using Flevy saves me time, enhances my expertise and ends up being a good decision."

– Dennis Gershowitz, Principal at DG Associates
 
"Last Sunday morning, I was diligently working on an important presentation for a client and found myself in need of additional content and suitable templates for various types of graphics. Flevy.com proved to be a treasure trove for both content and design at a reasonable price, considering the time I "

– M. E., Chief Commercial Officer, International Logistics Service Provider



Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more.