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.