GRM+全球风险经理（2022年春季刊）

ISSUESPRING022LaunchPartnerAspartofourAmericasfocusinthisissue,welookattheimpactofUSnaturalcatastrophesBusinessestakecoveramidescalatingpoliticalviolenceImprovingtheclaimshandlingprocessformultinationalsNotaneasymarketbutcapacityisavailableforthesectorcyCOCOMMENTThere’snohidingfromthefactthatweappeartohavegonefromonecrisistoanother.JustastheCovid-19pandemicseemedtobeslowlycomingundercontrolandsupplychainsbegangettingbacktosomenormality,theUkrainecrisishit.Itisearlydaysbuttheimpactontheglobaleconomyislikelytobeconsiderable(thoughnothingcomparedtotheimpactonUkraineanditspeople).Itisthelatestexampleoftheglobalnatureofriskandunderlinesagaintheneedtotakeacoordinatedandglobalapproachtoriskandinsuranceprogrammes.InthisspringeditionofGlobalRiskManager,ourregionalfocusisontheAmericas,andtheUSinparticular.Twoverydifferentrisksstandout,oneonthepropertysideandoneonthecasualtyside.Firstly,naturalcatastrophes,whichareincreasinginsize,severityandfrequency,drivenlargelybyclimatechange.InflationisalsoimpactingthecommercialpropertymarketintheUS,togetherwiththecontinuinghardmarket.Secondly,socialinflationcontinuestobeagrowingproblem,especiallyintheUS.So-called‘nuclearverdicts’arebecomingmorecommonandlitigationfundingisfuellingtheissue.Classactionsareseeingbillion-dollarsettlementsincreasinglyhittheheadlines,andnotsurprisingly,themarketcontinuestorespondwithpriceincreases.Ontheplusside,priceincreasesintheUSaremoderatingalmostacrosstheboard(withthenotableexceptionofcyber).CapacityisalsoenteringtheUSmarket,andforgoodriskstheimmediatefutureislookingalotbetterthanayearago.Inresponsetothehardmarket,USmultinationalshaveturnedtocaptives,andGRMreportsonrecordgrowthinthesector.AndglobalprogrammesremainpopularintheUS,withmorenon-traditionalrisksbeingadded.MalsoreportsontheLatinAmericanmarket,wherethehardmarketismakingitcleartolocalbuyersthatagoodriskmanagementstructureiswellworththeinvestment.lookatpoliticalviolenceandterrorisminsurance(PVT),andhighlighthowdaptingtheirPVTproductstoprotectclientsagainstchangingterrorthelifesciencessector,wheremostmultinationalinsurancebuyersareabletogetthecovertheyneedforkeyrisks,andnewcapacityismoderatingpriceeincreasingfocusonimprovingandspeedinguptheclaimsprocessformultinationals,andthevitalroleforclaimsdataandanalysistoimprovetheirContentGRMeditorTonyDowdingtdowding@EditorialcontributorsMichaelBradfordUScorrespondentGarryBoothSeniorjournalistBenNorrisDeputyeditor,CommercialRiskRodrigoAmaralSeniorjournalist,MadridHeadofcontentAdrianLadburyaladbury@HeadofproductionChrisMorrishcmorrish@rcialHeadofsalesHugoFosterhfoster@Tel:+442038580191SenioraccountmanagerHarveySmithhsmith@Tel.+447919276471Operations&eventsmanagerAnnabelWhiteawhite@Tel:+442038580193ManagingdirectorStewartBrownsbrown@Tel:+442038580190RubiconMediaLtd,Unit5,FarmBusinessCentre,TN57DL,UKnagementSteveAcunto,StephenAcunto,StewartBrown,HugoFoster,AdrianLadburyninessestakecoveramidescalatingpoliticalviolenceTakingthepainoutofclaims8Brighteroutlookfor12lifesciencessectorBachonthefrontfoot16inLondonRIMStofocusonfederal20UScommercialproperty:Good22risks+gooddata=betterpricingLivingwithincreasingUS26natcatexposureModerationbutchallenges28Captives:Shiningalighton34thehardmarketLatinAmerica:Hardmarket40Globalprogrammes:Certainty44inanuncertainworld/global-risk-manager3PoliticalPoliticalviolenceandterrorismBusinessestakecoveramidescalatingpoliticalviolenceIntensepoliticalinstability,inequality,nationalism,pandemicandevenclimatechangearefuellingstrikes,riotsandcivilcommotionrisksaroundtheworld,fromSouthAfricatoBrazil.Meanwhile,terrorists’tacticsandtargetsarechanging,withdeadlyarmedattackerscreatingasmuchdisruptionasplantedbomb“spectaculars”.Thechangingriskprofileofpoliticalviolenceandterrorism(PVT)isreflectedintheevolvingcoveragenowavailabletobusinessestoprotectagainstpropertydamageandlossofincome.Bombattackshaveamajorimpactintermsofpropertydamageandalsothroughtheshockfactoronthepopulation,butproblemsforterroristswithpurchasingandmovingexplosives,aswellevadinglocalintelligenceandsecurityservices,havereducedtheirfrequency.Nowadays,“low-costterrorism”byindividualsrandomlyattackingpeoplebymeansofhandheldweaponsorvehicles,likethe2016truckattackinNice,ismorecommonthanitusedtobe.FrançoisBarriol,seniorunderwriterterrorismandpoliticalviolenceatLibertySpecialtyMarkets,saysthatdespiteasignificantnumberofvictims,wingaterroristattackonthecityin0164||/global-risk-managerPoliticalPoliticalviolenceandterrorismsuchattacksresultinlittle(ifany)propertydamage.Butmajorbusinessinterruptionremains,whichisnotusuallycovered.“InsituationslikeNice,thetourismindustrywasseverelyimpactedHotelssuffereda10%reductioninattendance,butupto25%reductioninturnoverinthe30daysfollowingtheattack,despiteitbeingthepeakseason.That’sthereasonwhymanymultinationalcompanieswithworldwideoperationsaremorefrequentlyintegratinglossofattractioncoverageintotheirprogramme,”hetellsGRM.Active-shooteralertChrisParker,headofpoliticalviolenceanddeadlyweaponprotectionatspecialtyinsurerBeazley,whilethePVTinsurancemarketsemphasisisstillonofferingcoverforphysicaldamagetoscheduledassetsandtheresultantlossofincomeduetotheinterruptionoftheinsuredbusiness,clientsarebroadeningtheirinsurancecoveragefromsabotageandterrorismtofullpoliticalviolence.“Wearealsoseeinganincreaseinthenumberofclientspurchasingdeadlyweaponsprotectionandactive-shootercoverage,especiallyintheUSduetotheincreasednumberofmassshootingsandthenumberofshootingdeathsthecountryexperiencedin2021,”headds.Deadlyweaponsprotectioninsurancetriggerswithouttheneedforanyphysicaldamagetoaninsuredassetandwillrespondassoonasaweaponhasbeenbrandished,Parkerexplains:“Thecoverageisaimedatprotectingpeopleaswellasphysicalassets,andcombinesaninsurancepolicywiththeservicesofacrisisresponderwhowillhelpaclientbefore,duringandafteradeadlyweaponsattack.”AccordingtoCorinnaWalter,terrorismunderwriteratLibertySpecialtyMarkets,Europeanbusinessesusedtorelyonprotectionagainstcivilunrestorpoliticalviolencethatwasincludedinall-riskpolicies.InGermanyforexample,insurersusuallyhadsmaller,localisedeventsinmind,perhapsresultinginafewbrokenwindows.“Riotsandcivilcommotion,asweoftenexperiencethemtoday,arecharacterisedbygreaterviolenceandhigherlosspotential.Giventhemultipleexamplesofpoliticalviolenceandstrikes,riotsandcivilcommotionweseetoday,thedemandforsuchcoverageisgrowing,especiallyforcompanieswithassetsinriotousregions.”IntheFrenchmarket,coveragesgrantedunderall-riskspolicieshavebeenshrinkinginthehardtaddsBarriolTerrorismriotsandcivilcommotion,whichusedtobecoveredperils,arenowregularlysub-limitedorsometimesexcluded.fferTimStrong,headofinternationalcrisismanagementatAspenInsurance,saysthechangingnatureofterrorismmeansinsuredsneedtomakesurethattheyhavesuitablecoverageinplace.HesaysmostterrorismproductsavailableinthemarkethaveaclearTerrorismandpoliticalviolenceinsuranceisnotintendedtocoverthetypeoffull-scalewarseeninUkraine,andthecoveronlyrespondswhenrelevantnationsarenotatwar.But(re)insurerswilllikelyincursomedirectandindirectlossesasaresultoftheconflict,despitethestandardpolicyexclusionsthatexistforwarandeconomicsanctions.Theseprovisionsshouldlimitliabilityfor(re)insurersinsomelinessuchasenergyandmarine.Othercoverages,suchastradecreditandpoliticalrisk,typicallydonotcontaintheseexclusions,accordingtoanotefromKBRA,aUSratingsagency.KBRAsayshigherclaimscouldalsodevelopfromcyberriskbecausethewarinUkrainehassignificantlychangedthefuturecyberthreatlandscape:“While(re)insurerswitheasternEuropeexposurearemoredirectlyexposedtocyberclaims,alliesofUkraine,aswellascompaniesthatcuttieswithRussia,couldbecomeexposedinascenariowheresanctionsagainstRussiaareexhaustedandthewarshiftstocyberspace.”Regardlessofthelineofbusiness,ambiguouswordingsmaygeneratesomelitigationandAddressingtheeffectofsanctions,whileno(re)insurerhasyetvoluntarilyceasedunderwritingrcesuchanoutcomeKBRAsaysHoweveravoidingamoreproactivestanceonthewar’shumanitariancrisismaycausereputationaldamagetotheinsuranceindustryoverthemediumterm.Moreover,aprotractedandintensifiedconflictmaycauseunpredictablerippleeffectsacrossotherbusinesslinesandmiciles/global-risk-manager5PoliticalPoliticalviolenceandterrorismdefinitionofterrorism–anactcommittedforpolitical,religiousorideologicalpurposes.nsiftheassailantiskilledduringirmotivescantbeeasilyidentified?Forexample,themotivebehindtheinwhich60peoplewerekilledisstillnotclear.docksmotivefortheattackThesolutionistobroadenthetriggeronterrorismproductstoavoidanypotentialgapsincoverage,”Aspendevelopedaproduct,calledActivedstomostphysicalattacksandprovidesamoreholisticcoveragesolution,increaseindemandforthedeadlyweaponsprotectionandactive-shootercoverages,andbelievesthatmoreinsurancecarrierswillmoveintothespaceofferinggreatercapacityandANAGERISSUESPRINGproductchoiceforclients.“Marketconditionsremainsimilarto2021,withincreaseddemanduranceespeciallyforemergingmarketentyofavailablecapacitytocoverthesordingtoLibertyworkcollaborativelywithunderwritersandbrokers“Thisproximityhasgivenusthepossibilitytofindspecificsolutionstoindustryorclient-specificconcerns.WehavealsobeenactingproactivelyTheaftermathofriotinginDurban,SouthAfrica,July2021e2001”/global-risk-managerPoliticalPoliticalviolenceandterrorismtoraiseawarenessaboutthevolatilityofthoseperilsinallterritories,inordertoavoidreceivinglast-minuterequestsforcoverinregionswherepiainmid-2021andUkraineatthebeginningofthis“Wealsonoticeanincreaseinsubmissionsfrommiddle-marketcompanies,whichweren’tusedtobuyingsuchcoverinthepastandnowfeelconcernedaboutsuchproblems,”headds.ThePVToutlookindevelopedeconomiestakingtheeconomyhassuffered.Manycompaniesarethreatenedwithinsolvencydespitegovernmentaid,andtheGermaneconomicrecoveryprocessrEuropeancountriesThisisleadingtofrustrationandradicalisationamongsomegroupsofpeople,whichisbeingdischargedindemonstrations,sometimesaccompaniedbyMyanmar,alteredtherenewaldynamicforLibertySpecialtyMarketsanditsmultinationalcompanyclients.Onechallengewasofferingacceptabletermsforlong-terminsuredswhohadlossesorharetailexposureinveryriskycountrieswhileensuringthelong-termsustainabilityofitsoffers.Theotherwasmanagingitswarandpoliticalelevelevenforinsuredswithagoodriskprofileandnoloss.layeringthemostchallengingPVT/warinsuranceprogrammesinordertoofferanaffordablecapacitywhilemitigatinginsurersexposureAhugeeffortwasalsomadetointegratethePVTandwarinsuranceprogrammeswithbothend,thelargemajorityofaccountswererenewedandsomeofthebestrisksevenbenefitedfromamarketisnotinevitableotsinJulyAtthisstagewedonotknowthefinalquantumoftheSouthAfricanrtainlybethelargestlossof2001.“ThemarketalsosawlossesinothercountriesChileandColombiatonamebutafew.Thishascausedpremiumratestoincreaseforriskslocatedinthoseaffectedcountries–butoverallthegforPVTinsuranceremainsstableicalviolenceonismandpoliticalinstabilityhaveenteredaneweraWhilethefundamentalpurposeofcoverremainsthesame,recenteventshavecalledforanupgradeinconditionsandexpansionincover.Off-the-shelfproductshavebeenclaims-testedthroughnumerouseventsthathavehighlightedgapsincover.Terroristshavefoundnewwaystocreatefearandcauseharmtothepublic.Bombshavebeenreplacedbymoresophisticatedweaponryincludingdronesandballisticmissiles,andtherearemore‘lonewolf’-stylemaliciousattackeventsusingavarietyofweaponsincludingknives,firearmsandvehicles.CA:Insurersarepartneringwithspecialisedsecuritycompaniestodevelopbespokeproductsthatprovidecompensationcoverforvictimsofanevent,damagetoinsurableproperty,includinglossofrevenueandlegalliabilities,withaccesstocrisisresponseteamsbefore,duringandafteranevent.Theseproductsdifferfromthestandardterrorismproductsastheyautomaticallyprovidecoverforvictimsupport,medicalandpsychiatrictreatment,retrainingofstaff,relocationandrebrandingcostswhich,previously,wouldhavebeenuninsuredoracosttotheclient,unlessotherwisespecificallycovered.Non-materialdamagebusinessinterruptioncovers,suchasdenialofaccess,lossofattractionandthreat,arebecomingmorerelevantandclientsarelookingtotheirinsurancepoliciesasarisktransfermechanism.Insurershaverecognisedtheincreasedriskandrespondedbydevelopingbespokeproductsthatarereadilyavailabletoglobalclients.vilCA:Thegeopoliticalsituationisunpredictableandcanescalaterapidly.Theinternetandsocialmediaarebreedinggroundsforradicalisationandforpoliticalactiviststospreadtheirmessage.Thisvirtualspacebenefitsfromfreedomofspeech,enablingpoliticalmovementstogainmomentumatarapidpace.The2021underwritingyearsawlossesduetodemonstrationsovergovernmentresponsestothepandemic.Itisconcerningthatinanyslightlyunstableenvironment,proteststhatstartaspeacefulcangainsufficientmomentumthatdamagetostreet-levelassets,infrastructureandhumanlossoflifeareahighClientsaremoreawareofthenatureofrisks,andthepurchasingofwidercoveragewillcontinuefortheforeseeablefuture.Historically,softmarketconditionssawpropertyinsurersprovidestrikes,riotsandcivilcommotion(SRCC)coverforanominalincreaseinpremium.However,followingthepoliticallymotivateduprisingsinChilein2019,wherethepropertymarketcarriedahighquantumofthelosses,therehasbeenamarketshifttocoverSRCCexposure.AfterlossesinChile,Colombia,andmorerecentlytheriotsinSouthAfrica,thepropertymarketisexpectedtocontinuetoapproachtheSRCCexposurewithcautionthrougheitherhighrateincreases,sub-limitingexposureorexcludingtheperilsintheirentirety.ThisincreasestherelevanceofthestandalonePVproductandhighlightstheimportanceoflevelsofcoverage.CA:FewtononeofthePVTmarketswouldhavemadeitthroughthe2021underwritingyearunscathedaslosseshitthemarketfromeverycorneroftheworld,includingSouthAfrica,eunderpressuretoapproachriskswithmorecautionandincreaserates.TheUkraineconflictisanothermajorlosseventforthePVTmarket,withtheLondonmarketlikelytofaceacostlyfallout.AwidearrayofbusinesseswithoperationsinUkrainehavecoverinsuredorreinsuredintotheLondonmarket,andlossesareexpectedtocomeintoLondonthroughopenmarketplacementsaswellasfacilities.SourcesestimatethatLondon’sgrossexposuretotheconflictcouldbeupto$5bn./global-risk-manager7onMultinationalsneedpoliciestorespondbothatndlocalsubsidiarylevelsotheclaimsprocessisinevitablymorecomplexandtheyhavemanydifferentrequirementswhenitcomesdowntoit.GrahamSmart,chiefcommercialofficer,tsofastomspracticesandjurisdictionalrequirementsmustallndobservedbutthesamestandardspectiveofwherealossoccurs.“Withglobalprogrammes,thereisalwaystheneedtoconsiderthedifferencesincoverbetweenthatsetbythemasterpolicywiththatwhichexistsunderanylocalwordings,balancingtherequirementsoftheinsurerwritingthemasterwiththoseofanyfrontinginsurer,”heexplains.“Asever,regularandeffectivecommunicationunderstandingofclaimsstrategy,withproperJamesRayner,globalrelationshipleader,Crawford&Company,believesthatwhenservingmultinationals,“youhavetoharnesstechnologiestodeliveradigitalclaimsolutionfromeverystakeholder’sstandpoint”,adding:“Thisincludes,forexample,communicationsandengagementbetweenpolicyholder,claimantandcarrier,fulfilmentenginesthatfacilitaterepairandreplacement,orpayment-processingenginesthatprovidecustomerswithmoreacceleratedpaymentoutcomesandgreatertransparencyintheclaimprocess.”istexpertisethatcanbemappedtothediverseandcomplexrisksandstrategicdemandsofmultinationalclients.“Thechallengeistopullallthesecapabilitiesandtoolstogetherintoaseamlessandcohesivecustomerrementshe8||/global-risk-managerexperiencethateasilyrecoversfromunexpectedoutcomesorfailuresinthelifecycle,”headds.Therearemanywaysinwhichtheclaims-handlingprocesscanbemademoreefficientandlessstressfulforallconcerned,rangingfromearlyinvolvementofclaimsteamstoclaimsprotocols.Perhapsthemostcrucialiscommunication,ndonheadofreinsuranceatlawfirmKeoghs,pointsout:“Constructiveengagementandgoodcommunicationbetweenriskmanagement,claimsbrokingteamsandinsuranceclaimssmoothclaimshandling.Agreeinginadvancetemplatesforclaimsreporting,theinformationeedandmanagingexpectationsalesonallsidescanaidthisGoodcommunicationbybrokers‘upthetower’inlayeredprogrammescanalsoreducetheriskofAcommoncomplaintfromclaimsteamsisthateyareonlyeverinvolvedwiththeinsuredoncefromtheinceptionofthepolicycanhelptofacilitatethedunderwritersduringtheplacementprocess.ofthespecificallypre-nominationofadjusters,canhaveamajorbearingonhowalossscenarioplaysout.“Whennominatedtoanaccount,wewillseektomeettheinsured’skeypersonnelandvisitmajorsitestobuildtrustandgainanunderstandingofandbusinesscontinuityanimportantpre-lossactivity.engagementduringprelossplanningisoftenlimitedtotheircarrier’sHoweverhebelievesevenlargecompanieswithanagementprocessesandbusinesscontinuityplanscanunderestimatethecomplexityoftheclaimsprocess.“Incorporatingtheperspectiveandexpertiseofaclaimshandlingfirmusuallystrengthenstheresiliencyoftheirpre-“Workingwithatechnical,strategicandexperiencedadjustingteamthatunderstandstheimportanceofplanning,timelinessandresponsivenessofcommunicationatthepre-lossstagecangoalongwaytoimprovingclaimoutcomes.PartneringwithanadjustingfirmhatunderstandstheinsuranceecosystemalsoatacomprehensiveplanandteamHeaddsthatadjustingteamswilloftenbeinvolvedinpre-lossplanningattheinceptionofthepolicy,andthisincludesintroductionsbetweenthemultiplepartiesinvolvedwithaclaim,ofrolesandresponsibilitiespolicywordingreviewstoensureeveryoneispreparedwhenalossoccurs,andreviewsoflocationsandanybusinessinformationrelevanttotheresponse.Pre-lossnominationofadjustersandtheestablishmentofclaimshandlingprotocolsarevitalinthedeliveryofaneffectiveandefficientclaimshandlingserviceandsomethingueinaccordingtoSmart.“Alongsidestrongrelationshipsandtheestablishmentofclearcommunicationchannelswithkeystakeholders,thedeterminationofclaimshandlingprotocolsandpre-nominationofadjustersenableanimmediatepost-lossfocuson/global-risk-manager9sponseThisallowsdecisionstobemadesooner,bothfacilitatinglossmitigationandultimatelyreducingtheclaimlifecycle,”hesays.HoweverSchttewarnsthatawell-draftedclaimsprotocolisnoguaranteeofwell-runclaims.“Claimsprotocolscanhelpsetoutaheadoftimehowtheclaimsprocesswilloperate.Ontheotherhand,claimsprotocolsthatareunrealistic,inappropriatetotheclaim,orraiseuncertaintyabouttheirmeaningorlegaleffectcanbecounterproductive.Sometimes,afive-minutephonecallismorevaluablethanafive-or50protocol,”hesays.ingproblemareastobeidentifiedandmanaged,togetherwithtargetedriskimprovementlementriskThevolumeoflossdatacapturedintheclaimsprocesshasgrownexponentially,accordingtontsincombinationwithriskengineeringadvice,iscriticalinhelpingthemspotlosspatternsandktoinsurersinthemostefficientway.Itisessentialtocaptureallrelevantlossdatainthisprocessincludingnearmissesanduninsuredlossesnotjustinsuranceclaims–asthiscanhelpcompaniestakeriskmanagementactionsorobtaininsurancecoverageproactivelyratherthanreactively.Manymultinationalsself-insurethroughcaptivesandthefeedbackloopcreatedthroughthecaptureofthisdataismissioncriticaltotheperformanceandvalueofgfirmscanalsohelpcorporateriskmanagerslookbeyondtheirownorganisationsandbenchmarktheirriskmanagementandlossperformanceagainstthewidersectorsinwhichtheyoperate.Thiscanhelpmultinationalsidentify,forexample,thetypesoflossesmostfrequentlyseenatanindustryorregionallevel,commontriggersforlargelosseswithinasector,supplychainbottlenecksorareasbecomingmorevulnerabletoextremeweather.”ogyTechnologyanddigitalisationarebecomingincreasinglyimportantintheclaimsarena,aswithdinsuranceRaynernotesthattheclaimsprocessisbecomingincreasinglydatadrivenandautomated.“Aswellasbringingimprovedspeedandaccuracytoindividualclaims,thisalsoenablesglobalsolutionsandtheresponsestocomplexmultinationalclaimstobecoordinatedfarmoreefficientlyandcost-“Thechallengeistoleveragethatdatatoimprovecustomerexperienceandlossperformance,buttheadoptionoftechnologytalisationmeanstheinsuranceindustrybeenbetterplacedtodothisWehavesatamacroorgranularlevelinawayneverbeforedriveimprovementsintheclaimsprocessmuchfasterthanbefore,whilealsoachievingbetteroutcomesforbothpolicyholderandcarrier,”saysSmartagreesthattechnologyplaysakeypartineffectiveclaimsmanagement,intermsofmediacapture,datacollection,reportingandanalytics.Buthenotes:“Whileitalsoassistswithprocessefficiency,communicationandclaimcalculation,itwillnotdelivertheempathyandtheinnovativeloss-mitigationsolutionsthatagoodadjusterbrings,norwillitsellpolicyresponse,repudiationorconductsettlementnegotiations.Thefoundationofsuccessfulclaimshandlingistheabilitytobuildtrustingrelationshipswiththeclaimsstakeholders.”Theclaimsprocessisbecomingincreasinglydata-drivenandautomated10||/global-risk-managerTherearesignsthatTherearesignsthatnewcapacityinthelifesciencesmarketisbeginningtoflattenrateimilarstoryseemstobeplayingoutforriskwhererecentligation,particularovertheop