Liability risk arising from information security violations is on the radar screen of many commercial insurance providers. Despite the widespread use of the term “cyber,” some of the critical risk mitigation tactics have little – if anything – to do…
Rick Roberts, president of RIMS, the risk management society, is happy to see risk professionals increasingly getting a seat at the business strategy table.
Insurance coverage, for terrorist acts in Canada, is available through specialty markets. However, many Canadian organizations are not buying the insurance and are left with coverage gaps, including third-party liability exposure.
Environmental clean-up can cost millions of dollars, regulators sometimes force innocent organizations and individuals to pay for remediation and general liability policies do not always cover pollution risks. To be prepared, risk managers should assume their organizations have at least some environmental exposure.
Any organization could be the target of an active shooter trying to harm people in a confined area. Canadian firms have a legal duty of care to ensure persons are safe from dangerous activities taking place on their premises, so managers need to take very specific measures to identify, analyze and mitigate the risk.
As mining and metals firms connect more operational systems to computer networks, their vulnerability to hacking tends to increase. Yet most metals and mining firms surveyed have no formal program to detect information security breaches.
Fronting is one option for risk managers wanting to reduce insurance expenditures by retaining more risk, while still complying with contractual and regulatory requirements. Such an arrangement has specific requirements and a clear understanding of who will manage claims.
Information, insight and innovation are critically important to getting a firm grasp of risk and being prepared to address events that may unfold. As part of that, though, risk professionals must remain open and flexible to keep pace with a risk environment that is ever-changing.
With advances in casualty catastrophe modelling and greater use of enterprise risk management, liability insurers are poised for a transformation in risk management, reinsurance focus and strategy. The shifting focus to real exposures of liability business is closing the divide that, until recently, has existed between the framework that supports property versus casualty exposures.
Having identified British Columbia as a province with strong growth and profit potential, SGI CANADA is set to enter the marketplace this summer. While the focus in the short term will be to provide brokers in the interior with an additional market and capacity, the company will eventually offer products in higher earthquake regions.
Data and analytics may offer the clues to help solve the mysteries of weather-related risk. In response to the explosion of third-party providers of data and analytics, many commercial insurers are reassessing their traditional methods for capturing information about potential risks.
Public-private partnership (P3) agreements are emerging as the design, build, fund and operate model of choice in Canada. But while the model offers an opportunity to share risks and realize rewards, it demands careful consideration of potential exposures, including environmental risk, which are best addressed by tailored cover.