Businesses need to learn lessons from the 2011 catastrophes: new Marsh report
According to a new paper published by Marsh, the scale of the catastrophes experienced in 2011 exceeded previous loss-modeling predictions and has challenged established thinking on the nature of risk. The paper says that, post-2011, companies need to re-examine their risk management strategies and introduce new methodologies to strengthen their operational and financial resilience.
In its paper, ‘Lessons Learned from the Catastrophes of 2011’, Marsh identifies five major risk and insurance topics arising from events of 2011, namely denial of access; strike, riot, civil commotion or terrorism; the differences between flood and storm damage; contingent business interruption; and 72-hour insurance notification clauses.
According to Marsh, the catastrophe events of 2011 events have raised concerns around the suitability of standard denial of access cover, which is typically only for short-term incidents. Marsh also highlights the growing importance to businesses of contingent business interruption (CBI) insurance, especially in the wake of supply chain failures following the Japanese earthquake/tsunami and Thailand floods.
Obtain the report from here, after free registration.
•Date: 16th April 2012 • World •Type: Article • Topic: Operational risk