Risk Consulting issue 2/2018

If's risk management journal.

Covering the risks of the future

If is known in the market as a competent insurance company that truly understands risks. To keep that position, we focus on and invest in developing our business – so we can change fast and meet our clients' expectations. These days, we are working to give our clients an easy and seamless experience. I will give you some recent examples of what we have done:

A transparent and clear overview of global insurance through new If Login pages for large corporations. Accurate pricing and a precise global location overview of all insured properties through a new digital underwriting tool, giving an instant overview when something occurs. International services in 170 countries with Nordic client teams, ensuring the best competencies for our clients.

We firmly believe in close partnerships with our ­clients, which is the only way forward to share our extensive knowledge on how to best manage risks. We do it large scale through experiments such as sandwich panel tests and PV panel tests, and ­daily by working with our clients on the management of risks.

We share the insights we get from working with our clients on our Insight pages. Here we publish useful articles and videos. Right now, you can learn more about things such as cyber risks, natural hazards, and business interruption, to mention just a few. We constantly add new ­material and articles to the site.

And you can, of course, find this and previous editions of Risk Consulting Magazine on the website.

Safe reading!

Poul Steffensen

Head of BA Industrial, If

Wind of change

The rise of renewables is one of the biggest changes in the global energy supply. Transmission capacity and networks play a central role in our future energy system, introducing also new and emerging risks.

Storms, floods, hurricanes, and drought – the effects of the changing climate have been clearly visible all around the world during the past few years. With increasing pressure on the use of fossil fuels, the focus is concentrating more and more on renewable sources of energy.

In Europe, and more specifically in the Nordic countries, there is a quiet energy transition taking place at this very moment. The Nordics are investing massive amounts in infrastructure to be able to increase the production and optimise the transportation of renewable energy.   Read the article

When the storm arrives

Severe storms and hurricane seasons seem to be more a new normal than an anomaly. The 2017 Atlantic hurricane season was hyperactive and extremely destructive - Hurricane Harvey was one of the costliest tropical cyclones on record, inflicting at least USD 125 billion in damage. With the 2018 season nearly behind us, we have seen no signs of slowdown.

Even as hurricanes and other potential natural hazards develop around the globe, If is not paralysed when it comes to helping clients. We work hard to warn and inform clients with property locations in areas where major natural disasters take place. Read the article

It's all about preparing yourself for the future

With 500,000 people taking the train every day, 298 stations all over the country, more than 7,000 employees and responsibility for buildings and workshops, there is no shortage of safety considerations for Denmark's biggest public company in the field of rail transport, DSB, to keep an eye on.

In close collaboration with If, DSB works constantly to improve safety – both on and away from the tracks. Read the article

Photo: DSB. Niels Dam, General Manager, Head of Development and Enterprise, DSB Real Estate and Gert Mikkelsen, Senior Vice President, DSB

Insurance – important for unlikely risks, too

It was after midnight on 21 February 2018 the fire broke out in an electrical cabinet, where combustible gases accumulated and were eventually combusted due to an electrical spark. The fire then spread to the adjacent ceiling. As the fire broke out in the middle of the night, it is estimated that the fire raged for some two hours before firefighters arrived.

Already in the morning hours after the fire broke out, If was on site to support Hörle. Read the article

Photo:Hörle Wire. CEO Jesper Bundgaard in the picture

Snow load – a challenge for property owners

In the Nordic region, last winter gave us an exceptional amount of snow. Because of this, our clients and customers experienced more snow load-related damages than would normally be expected. Even if an insurance cover provides good economic protection from damage caused by snow load, it is always better to try to avoid such damage.

We need to realise that snow load represents a significant risk that could compromise building structures. In some cases, people may also be severely injured, even fatally, by collapsing buildings or snow sliding off roofs and the like. Read the article

Climate change adaptation – survey in Swedish municipalities

Based on varied survey results, If and several other leading insurance companies in Sweden proposed that all municipalities should analyse how they can be affected by climate change. This proposal became a legal requirement on 1 August 2018.

Most municipalities still have only started with climate change adaptation. Read the article

Logistics versus fire safety in rack storage

Many logistics professionals do not have sufficient knowledge of the implications for fire safety of changes made to the way that goods are stored in warehouses.

There are several situations to look out for to manage changes safely. Read the article

Eliminating underinsurance in sawmills

Insurance is an efficient method for mitigating the risks associated with any business.

If P&C Insurance has, together with Pöyry Management Consulting, developed a new calculation tool to evaluate the replacement values of each department of a sawmill. Read the article

Claims analysis to improve corporate traffic safety

Traffic safety has been under thorough research for many years. Due to continuously evolving technology, both car and traffic system safety has been and will be improved.

Although technology can help to remove or avoid certain risks in traffic, it can also bring along several new ones. Read the article

hand on steering wheel, driving a car

The rise of cyber

The value of a company used to be determined by its physical assets, but today, most of the value comes from intangibles like data, intellectual property and technology.

There has been significant growth in the cyber insurance market in the past few years, the main driver being business interruption.

Additional complexity in managing cyber risks comes not only from the new technologies being adopted, but also from the increased growth and sophistication of attacks. Cyber risks touch clients from all industries, and companies of all sizes. Read the article

Blockchain is changing the business risks

There is plenty of hype around blockchain technology, which is a concept having the potential to change business processes, enable new businesses, and even revolutionize the world economy.

According to a recent study by Juniper Research nearly two-thirds of large businesses are looking to deploy new blockchain projects. Read the article

Germ infested security

On a business trip? According to the results of a new study by Finnish and British researchers, half of plastic airport security bins may carry viruses that cause respiratory infections, according to The Guardian. The surfaces were swabbed at Helsinki airport as part of a scientific investigation carried out by experts from the University of Nottingham and the Finnish national institute for health and welfare during the winter of 2016. Conclusion: Hand-washing and careful coughing hygiene are crucial to the control of contagious infections in public areas with high volumes of people passing through.

The most common virus found was rhinovirus, which causes the common cold, while the samples also included the influenza A virus. "People can help to minimise contagion by hygienic hand-washing and coughing into a handkerchief, tissue or sleeve at all times – but especially in public places," professor of health protection, Jonathan Van Tam, said. "These simple precautions can help prevent pandemics and are most important in crowded areas like airports."

Ransomware may cost city 17M dollars

The ransomware attack that took down the city of Atlanta's ­computer network in March could cost taxpayers 17 million dollars, ­according The Atlanta Journal-Constitution. The ransomware incident in the US city knocked out services such as warrant issuances, water requests, new inmate processing, and online bill-pay programs across multiple city departments. To unlock the city's systems and data, hackers demanded 51,000 dollars worth in bitcoin, which the city refused to pay. The full extent of the damage is not yet clear.

Insurer sent in private wildfire experts

This summer, during the largest wildfire in Californian history, an US based insurer sent in private fire fighters and experts. "Before a wildfire, we know where all our clients are, where they live and how to contact them, so when they're in imminent danger of a wildfire, we give them tactics as to what they can do," Paul Krump, Chubb Group EVP, told CNBC. Last year Chubb's teams have visited more than 1,000 properties exposed to active wildfires. Proactive wildfire mitigation has a "huge return on investment," Krump noted in the interview.

Flying cars? No kidding

Japanese government is launching an initiative with the private sector to develop a future with flying cars, according to Japan Times. The initiative aims draw up a roadmap to commercializing flying cars. So far the concept has been largely theoretical. Government officials are partnering with companies like Boeing and Airbus, as well as major Japanese firms like All Nippon Airways, Japan Airlines, and NEC. A group of engineers are already developing a three-wheeled car that relies on drone technology to take flight. Toyota and affiliated companies have invested about 382,000 dollars in the project.

Climate change

The UK's Prudential Regulation Authority has issued a consultation paper on ways insurers and banks should manage financial risk arising from climate change. Appropriate governance, risk management, scenario analysis and disclosure are the main areas addressed. For governance, board-level engagement and accountability are expected.