Value added service or an (un)necessary evil?

21 August 2014

An insurance survey is a means of getting information relating to an insured’s site and presenting it in a way that can be used for the insurance placement. It can be applied to an onshore refinery or chemical plant, an offshore platform or an ongoing construction risk. Underwriters are becoming increasingly reliant on technical information on the sites insured to allow premium calculation, and for compliance issues. While this is less the case for offshore programmes, there is movement to request more information. 

Brokers and insurers employ engineers and specialists to assess the risks of these, and give feedback for insurance purposes, but also to advise clients on how to reduce their risk (to themselves and to others).

By working together, (insured, broker and insurer) all have the opportunity to reduce, or even remove the likelihood of a loss. This takes time to implement, for some initiatives must be developed, and protections need time to be designed and installed. This is why a number of insurers try to be long-term players in their relationship with the client and broker. In an ideal world, losses do not happen at a well-designed, well run site, but in practice, this is not the case. Losses do occur, and they can happen to the best and worst run sites. So, if good clients have losses, and insurers want to be long term partners with clients, then insurance surveys become important.

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For further information, please contact Paul Clarke, Head of Energy Risk Engineering, JLT Specialty on +44 (0)207 459 5641