Insurers and reinsurers place ever-increasing demands on business leaders to demonstrate a commitment to risk management through the use of the most appropriate risk engineering techniques.
- To understand the nature of the operations at the site, the associated risks and the management practices implemented to prevent, control and mitigate the risk exposures
- To obtain the necessary information to enable the evaluation of estimated maximum losses for the different policy sections purchased
- To provide energy risk surveys for insurance and reinsurance purposes
- To make recommendations for risk improvement
Comprehensive risk assessment
A comprehensive risk assessment should seek to identify risks and mitigation opportunities associated with:
- Climate and natural hazards
- Third party risks
- Plant, platforms and buildings
- Management systems and procedures
- Inherent occupation and process risks
Sophisticated loss estimation technology
By engaging with risk engineers with access to proprietary software, firms can access analysis of Estimated Maximum Loss (EML). Calibrated against historical loss activity, the data and analytics are designed to improve overall loss prediction accuracy. For vapour cloud explosion modelling, models consider dispersement factors (wind), pressure decay, and discharge characteristics. Other risks such as the impact of jet fires, vessel ruptures, Boiling Liquid Expanding Vapour Explosions (BLEVEs) and spill fires can all be analysed to understand the potential impact and identify opportunities to build resilience.
Through a database, risk engineers can leverage energy firms’ risk assessments and align with loss data for the purposes of benchmarking, calculation of probabilistic loss exceedances and the provision of recommendations for risk reduction. With these insights, energy companies are able to better understand risks and manage them by first identifying areas of high risk exposure, then by working with industry-focused brokers to tailor insurance programmes and prioritize risk reduction capital deployment.
(Click the hexagons for more information)
When operating in diverse and remote regions, clients should expect an approach to risk management that is truly global and delivers collaborative solutions across the full risk profile.
At Aon, we deliver localised expertise on a global scale. Our market share and global footprint enable our teams to monitor market trends through sophisticated data and analytics, and develop models to forecast how these trends affect our clients. Our energy hubs operate in many regions, providing direct access to our global industry specialists, risk engineers, consultants and local and international insurance markets.