HDInsights Edition 7 2022

When done well however, risk reports can guide underwriters with recommendations from risk engineers. “Underwriters may find it prudent to endorse the policy with clearly defined maintenance and servicing requirements to protect the insured's assets,” says Peter Ratering, Assistant Property Underwriter. “This would be not unlike common policy terms requiring regular cleaning of extraction vents to prevent grease fires in commercial kitchens,” said Mr Ratering. When investing in a meaningful risk report, an important add on is a Risk Improvement Management System. HDI has developed an account management system, GREEN 4.0, for the clients, which helps to manage the risk profile and risk improvement measures very easily, effectively and in real time. The purpose of this system is to enhance the relationship between clients, brokers and insurers. New HDI Green 4.0 application improves corporate resilience through interactive risk transparency. https://www.hdi.global/en us/infocenter/insights/2022/new-green-application/

In addition to e-mobility, many new risks will arise from evolving technologies such as hydrogen fueled vehicles and flying taxis for example. Among many considerations, HRC will be looking at individual fire and theft prevention measures. As fire risk increases with more electric or hydrogen fueled vehicles on the road, this can be a very important topic to discuss for certain concepts like underground parking for example. Complex risks “Underwriters should seek to involve risk engineers on complex risks, not just to provide insight on any endorsements or sub limits to apply to a policy, but also to provide an opportunity to collaborate with clients and mitigate any risk exposed by these new technologies. It's important to note that some risks while becoming more common do not suit a one size-fits-all-approach. We've seen this in particular with businesses incorporating more hydrogen paired technologies.”

Peter Ratering Assistant Property Underwriter HDI Global SE, Australia

Future-proofing Risk Management Strategies Future-proof risk management strategies also need to include supply chain risk . One HDI client has reported that transformers used to have a lead time before the pandemic of 6 to 12 weeks, whereas now this has increased to 52 to 86 weeks. “That's a significant change and something like that has to be implemented in a company’s business continuity plan (BCP),” Mr Glanz said. Another example is the current shortage of timber in Australia that will probably extend into 2023 and affects the entire construction industry.

Setting an Example with Motor Fleet Insurance Whilst short-term means being compliant today, long term means setting clients up for the future. HDI Global aims to set an example of such a “client-and situation-focus-risk-management” with a new product – Motor Fleet Insurance – which will be launched at the beginning of next year. For this new offer HDI risk engineers will carefully look at safety and risk assessments of motor fleets. HDI is also keen to support the transformation to fully electric and autonomous driving.

HDInsight Edition 7 - page 15