Home (re) Insurance Latin America The big villain of property insurance by AGCS

The big villain of property insurance by AGCS

5 min read
  • Allianz Global Corporate & Specialty (AGCS) biannual report looks in depth at some exposure trends to which every type of company is susceptible.
  • Large manufacturers or a small store; A fire or explosion can be devastating to any business. What can be done to prevent losses?
  • Some companies still fail to prevent incidents, even compromising their reputation.

by Stephen Clark and Felipe Orsi

Recent episodes that have made headlines around the world such as the fires at Notre Dame Cathedral in Paris and the National Museum in Rio de Janeiro are sad examples of how fire is still the worst enemy of business around the planet. Global fire losses have totaled  more than $15 billion over the past five years. Fire damage is one of the topics that can be found in the latest Allianz Global Corporate & Specialty (AGCS) publication called Global Risk Dialogue.

Number 1 cause for corporate losses and one of the most frightening risks to corporations, fires and explosions have been responsible for more than half of Property claims over the past 5 years. All these data reinforce the importance of prevention and rapid response in case of fire accidents. “There are three types of fire mitigation,” explains Stephen Clark, Technical Manager & Global Risk Advisor – Property at AGCS. “Preventive measures, fire extinguishing methods and contingency plans to ensure rapid recovery of operations.”

The impact of a fire incident goes beyond the structure of the company and can trigger consequential losses such as Business Interruption (BI) and Contingent Business Interruption (CBI), significantly increasing the value of the losses. There are also exposures not covered by traditional insurance such as “market loss”, depending on the activity and performance of the insured.

“When a client has a fire claim, their loss is usually very large, and it also impacts the finances of insurers and reinsurers, as losses also involve business interruption (BI and CBI) in addition to material damage. As such, we have a duty to work in partnership with the customer, especially in preventing and responding quickly to accidents, which is why the Risk Management (ARC) area at AGCS is critical. Through documentation reviews, digital modeling and on-site inspections, our engineers evaluate insured properties in detail and propose improvements aimed at eliminating or minimizing risk exposure”, said Felipe Orsi, Director of Property – AGCS South America.

There are many ways in which insurers and reinsurers can help companies with fire prevention, adapting structures and developing process and system improvements. One of the tools that AGCS risk management experts use is the 12 principles checklist below, thus ensuring more security in customer operations.

AGCS 12 Risk Management Principles

  1. MONTHLY LOSS PREVENTION INSPECTIONS.
  2. IMPLEMENTATION OF EMERGENCY PLAN.
  3. NON SMOKING POLICIES.
  4. NON DEFECTIVE PROCEDURES.
  5. HOT WORK PERMITS.
  6. MANAGEMENT OF SERVICE PROVIDERS.
  7. FIRE BRIGADE INSPECTION.
  8. TEST AND MAINTENANCE OF FIRE EQUIPMENT.
  9. TEST AND INSPECTION OF FIRE PUMPS.
  10. BUSINESS CONTINUITY PLAN.
  11. SECURITY.
  12. NEW PROJECTS AND CONSTRUCTION.
Load More Related Articles
Load More By iNLIP
Load More In (re) Insurance Latin America

Check Also

Aon hires Alejandro Padilla

Alejandro Padilla Mariscal, aon´s new Managing Director, Consulting and Science Reinsuranc…