Risk Appetite, an Insurance Perspective

Risk Appetite, an Insurance Perspective

Members Only Webinar, 1300 – 1400 on 27th November 2024

Overview

This members only webinar will look how insurance plays a crucial role in helping sustain businesses and promote their growth through the transfer of risks associated with property damage, business interruption, and product liability from defined foreseeable perils including fire and explosion risks, natural catastrophe risks, structural collapse, collisions, lifting failure etc. 

There is a legal requirement for example in the UK, for businesses to have cover on employer liability, to pay damages to any employee arising out of bodily injury, disease, illness or death, public liability, and to cover third parties for accidental bodily injury or damage to their property, due to the insured or their employee negligence, and for product liability to cover third party bodily injury or property damage caused by products, goods or services sold or supplied by the business.

Some of these perils that result in a loss and/or claim, are related to hazards that industry identifies as major accident events, where process safety plays a critical role in preventing and mitigating against these events. Losses and claims can increase premiums, and high frequency claims can lead to the risk being uninsurable, resulting in loss of business and growth. It’s therefore crucial the insured have a good safety management process in place and apply good industry practices. Losses and claims can increase premiums, high frequency claims can lead to the risk being uninsurable, resulting to loss of business and growth. 

Our expert speaker, Dr Soondus Moorhead from CNA Hardy is a chemical engineer specialising in process safety, with a career that spans 28 years working in heavy industries. Dr Moorhead will address the following in her presentation:

• Introduction to the insurance sector, markets, the role of a broker and governing bodies.
• Company and Lloyd’s markets.
• Re-insurance, Co-insurance, and self-retained insurance.
• Insurance terminology vs industry process safety terminology.
• What is an insurable risk.
• Risk appetite vs risk acceptance criteria, as can be different.
• What risk control engineering surveys achieve and the benefits of risk improvements to the insured in managing their risks.
• Claims and loss adjusters, what happens following a loss, how losses are estimated and common examples of losses.
• How losses are estimated at pre-binding. What is PML (Probable Maximum Loss), Amount Subject and how it links to MAH in process industries (major accident events). Not always the same.
• Examples of losses we see.
• Sustainable and new technologies, what is different about these risks and, how do you determine risk appetite and risk transfer and links to process safety where applicable.