As the world is ever changing, so are the way insurers interpret the natural disasters and how they will respond to cover these terrible events. Over the years, the U.S. has seen an increase in earthquakes, tornadoes, hurricanes, blizzards and more. The insurance industry now has created a stricter view of how they will cover these events. In particular, as we have seen with Hurricane Katrina and Hurricane Sandy, the insurance industry has developed a new terminology and deductible related, specifically, to “named storm/named windstorm.”
Hurricanes, Tropical Storms and Insurance – Oh My
Posted by
The ALS Group on Feb 19, 2015 4:11:23 PM
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Topics: named storm/named windstorm, Risk Management Blog, TCoR, Total Cost of Risk (TCoR)
What is Total Cost of Risk and why should I care?
“What gets measured…gets managed!” This statement is the fundamental principle behind the concept of “Total Cost of Risk” (TCoR), and I’ve been saying this for years. The question that I am asked all the time is, “what is total cost of risk (TCoR) and why do I care about it?”
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Topics: TCoR, Total Cost of Risk, Total Cost of Risk (TCoR)
With the multitude of information available, it is no surprise that the process of implementing an ERM Program seems daunting. As highlighted in our prior blog, Strategic Risks: More Important Now Than Ever, one of the very first steps in this process is to form an Executive Risk Committee (ERC).
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Topics: Enterprise Risk Management (ERM), Enterprise Risk Management, ERM, Risk Committee, Risk Management Assessment, Risk Management Blog, Strategic Risk Management, TCoR, The ALS Group, Total Cost of Risk, Total Cost of Risk (TCoR)
Strategic Risks are risks that affect or are created by an organization's business strategy and strategic objectives. For companies that are committed to thoughtfully managing risk, strategic risk is not a new concept. However, with social media and the speed in which everything happens these days, strategic risks are becoming a high priority for senior leaders. In a recent study released by Deloitte, 81% of companies surveyed now explicitly manage strategic risks, rather than simply focusing on more traditional risk areas, such as operational, compliance and financial risks.
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Topics: Enterprise Risk Management (ERM), Enterprise Risk Management, ERM, Risk Committee, Risk Management Blog, Risk Review, Strategic Risk Management, TCoR, Total Cost of Risk (TCoR)
I recently attended the Enterprise Risk Management Roundtable Summit in North Carolina held by NC State University that included representatives from Harley Davidson and Caterpillar among the speakers. This summit helped me gain insight into the emerging importance of a comprehensive risk management program and different strategies the companies have implemented.
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Topics: Enterprise Risk Management (ERM), Enterprise Risk Management, ERM, Risk Committee, Risk Management Assessment, Risk Management Blog, Strategic Risk Management, TCoR, The ALS Group, Total Cost of Risk, Total Cost of Risk (TCoR)
Political Risk - It Is More Than Just Insurance Coverage
Posted by
The ALS Group on Oct 16, 2013 1:41:19 PM
Civil unrest in nations formerly viewed as politically stable, such as Sweden and Brazil, is forcing global organizations to consider Political Risk insurance coverage. A recent paper by nationally recognized insurer called the need for Political Risk coverage a “top emerging concern” for global companies. This coverage is meant to help mitigate political exposures that are, normally, excluded from standard property policies to cover the risk to a company’s physical and financial assets. Some of the perils this policy will insure against are Terrorism, Riots, Deprivation or Confiscation of Assets, Strikes, Civil Commotion, Exchange Transfer Risk, Rebellion, and Insurrection. It is very difficult to model, price and determine the appetite for this coverage in the existing insurance marketplace. One thing that is important to note is that coverage is not guaranteed for the reason that rating basis in each country is based entirely on the underwriter’s evaluation of the risks in countries. Coverage is available in both the public market, through OPIC and Miga, as well as the private insurance market.
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Topics: Cross Border Risk, Enterprise Risk Management, ERM, Political Risk, Risk Management Blog, Strategic Risk Management, TCoR, The ALS Group, Total Cost of Risk, Travel Risk
New Commercial Property Endorsement Can Mean Problems for Landlords
Posted by
Albert Sica on Sep 5, 2013 2:45:26 PM
Each week, landlords and authorities discover 300 methamphetamine labs in the United States, according to National Public Radio. If you own apartments, rent hotels or run boarding homes, you may run into a tenant who decides your rental properties are a great place to cook meth. Better check your commercial property policy now, because recent changes in commercial property insurance coverage forms may significantly restrict coverage for the resultant clean-up from meth “cooking” operations.
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Topics: Construction, Political Risk, Property Risk, Real Estate, Risk Management Blog, Strategic Risk Management, TCoR, The ALS Group, Total Cost of Risk, Total Cost of Risk (TCoR)
Map Out Your Risk - Beware of High Hazard Flood Zones
Posted by
Albert Sica on Jul 25, 2013 8:58:42 AM
Real estate is one of the most important assets one can have regardless of owning personally or as a business entity. As they say, it’s all about location, location, location – so you better know exactly what risks you are going to be exposed to when looking to purchase new property or simply evaluating your current location(s). In the aftermath of Superstorm Sandy the scrutiny of flood insurance policies is at an all-time high, particularly, in the northeast. When assessing the value of any new or current property and the insurance requirements and costs that come with it, understanding where it is in relation to local flood zones is critical.
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Topics: Flood, Flood Zone, Political Risk, Property Risk, Risk Management Blog, TCoR, Total Cost of Risk, Total Cost of Risk (TCoR)
Supply Chain Reputational Risks Heightened Amid Recent Worldwide Factory Deaths
Posted by
Albert Sica on Jul 17, 2013 1:19:36 PM
A recent Wall Street Journal article about a high profile factory accident, this time in Cambodia, brings new emphasis to the fallout that can arise from supply chain risk. Asics Corporation, the Japanese sport shoe manufacturer, sourced some of its shoes from a factory in Phnom Penh. In April 2013, a mezzanine floor collapse killed a young father and a young woman who, reportedly, was only 15. The incident also injured a number of other workers. Fallout from the incident was almost immediate. Asics instructed its nine suppliers in Cambodia to join Better Factories Cambodia, which keeps tabs on working conditions in the Cambodian garment industry.
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Topics: Enterprise Risk Management (ERM), Enterprise Risk Management, ERM, Manufacturing and Distribution, Reputational Risk, Risk Management Blog, Strategic Risk Management, supply chain, Supply Chain Risk, TCoR, Total Cost of Risk
Preventive Care Under The PPACA May Increase Your Health Care Costs
Posted by
The ALS Group on Jun 11, 2013 12:51:13 PM
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Topics: HCP, Healthcare, Human Capital, Human Capital Practice, Political Risk, Risk Management Blog, Strategic Risk Management, TCoR, Total Cost of Risk, Total Cost of Risk (TCoR)