United States

RISKAFRICA Magazine - - • AVCA -

Sur­vey re­veals clean tech com­pa­nies are un­der­in­sured

Nearly half of clean tech com­pa­nies sur­veyed in a re­cent study have not pur­chased con­tin­gent busi­ness in­come in­sur­ance. Yet when it comes to busi­ness in­sur­ance, 69 per cent of clean tech ex­ec­u­tives rely on agents or bro­kers, while only 20 per cent rely on peers and 14 per cent on le­gal ad­vis­ers. The Chubb 2012 Clean Tech In­dus­try Sur­vey is a tele­phone sur­vey of 268 in­sur­ance de­ci­sion-mak­ers at a broad range of clean tech com­pa­nies through­out the United States and Canada.

In­sur­ance is viewed more as a pro­ject re­quire­ment than a means of risk man­age­ment, with 55 per cent of com­pa­nies cit­ing con­tract, ven­ture cap­i­tal­ist or board mem­ber re­quire­ments as a top mo­ti­va­tor for pur­chas­ing in­sur­ance. Only 25 per cent were mo­ti­vated by con­cerns about in­jury, dam­age or other risks. Forty-six per cent of clean tech com­pa­nies have not pur­chased busi­ness in­come in­sur­ance; 50 per cent have not pur­chased con­tin­gent busi­ness in­come in­sur­ance; 75 per cent have not pur­chased cyber li­a­bil­ity in­sur­ance; and 42 per cent have not pur­chased em­ploy­ment prac­tices li­a­bil­ity in­sur­ance.

Aon Global Risk Man­age­ment Sur­vey re­veals top 10 risks for 2013

The bian­nual Aon Global Risk Man­age­ment Sur­vey, re­leased by Aon Risk So­lu­tions, has iden­ti­fied the top 10 risks fac­ing or­gan­i­sa­tions to­day, and how much of a prob­lem they are ex­pected to be in 2016.

It high­lighted the fol­low­ing as the most sig­nif­i­cant risks for 2013:

One pos­si­ble ex­pla­na­tion of the de­cline in risk readi­ness could be that the pro­longed eco­nomic re­cov­ery has strained or­gan­i­sa­tions’ re­sources, thus ham­per­ing the abil­i­ties to mit­i­gate many of th­ese risks.

Wor­ry­ingly, the re­port in­di­cates a sig­nif­i­cant de­cline in risk readi­ness among many of the sur­vey re­spon­dents. “One pos­si­ble ex­pla­na­tion of the de­cline in risk readi­ness could be that the pro­longed eco­nomic re­cov­ery has strained or­gan­i­sa­tions’ re­sources, thus ham­per­ing the abil­i­ties to mit­i­gate many of th­ese risks,” ex­plains Stephen Cross, chair­man of Aon Global Risk Con­sult­ing.

In­sur­ance im­pli­ca­tions of Bos­ton Marathon bomb­ings

Dr Robert Hartwig, pres­i­dent of the In­sur­ance In­for­ma­tion In­sti­tute, told RISKAFRICA that there may be sev­eral mil­lion Dollars in dam­age and in­sured busi­ness in­ter­rup­tion losses aris­ing from the Bos­ton Marathon.

The In­sur­ance In­for­ma­tion In­sti­tute is a US-based in­sur­ance or­gan­i­sa­tion com­mit­ted to im­prov­ing pub­lic un­der­stand­ing of in­sur­ance. Dr Hartwig adds that al­though in­sured losses from the Bos­ton Marathon have not yet been es­ti­mated, the ac­tual di­rect prop­erty losses are likely to be mod­est. “The de­sign and place­ment of the bombs were in­tended to kill and in­jure as many peo­ple as pos­si­ble, as op­posed to de­stroy phys­i­cal prop­erty,” he ex­plains.

When asked about the rep­u­ta­tional dam­age that this may cause the Bos­ton Marathon, against which no in­sur­ance can be pur­chased, Dr Hartwig says he does not think that the con­cerns for the fu­ture are spe­cific to this marathon or marathons in par­tic­u­lar. Rather, the im­pli­ca­tions are larger. “They af­fect not only the Lon­don Marathon, but all ma­jor sport­ing and en­ter­tain­ment events around the world in the weeks and months ahead. In the wake of the bomb­ings I would ex­pect that or­gan­is­ers and host cities glob­ally will be seek­ing to tighten se­cu­rity,” he con­cludes.

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