Risk Management

Founded in January of 1954, Risk Management is a monthly magazine that features news and industry analysis for corporate risk managers. The magazine has a circulation of 16,000 readers and is published by the Risk and Insurance Management Society Inc. Morgan O'Rourke is Editor-in-Chief. Jared Wade is Editor. Bill Coffin is Publisher/Editorial Director.

Articles from Vol. 52, No. 8, August

Anticipating and Managing Environmental Catastrophes
For over 35 years, companies with obvious risk exposures such as refineries, smelters and chemical manufacturers have invested heavily in environmental risk reduction. They created extensive operational and financial contingency plans that activate...
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Bermuda
Location: Northern Atlantic Total Captives: about 1,200 Capitalization: Class 1: $120,000. Class 2: $250,000. Crass 3:$1 million. Class 4: $100 million. Companies whose gross premiums for professional liability constitute more than 30% of gross...
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Best Practices in Product Liability Management
"Death Blamed on Medication" "Tough Bagel Botches Anniversary; Couple Sues Restaurant for Broken Tooth" "Carbon Monoxide Poisoning Allegations Gain Momentum" "Rotary Hammers Recalled" "Worker Dies in Tractor Rollover; Seat Belt Attachment...
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Beyond Bermuda: A Roundup of Domiciles near and Far
By the late 1960s, changes in the U.S. tax code, a global capacity shortage and legislative changes in international finance centers all laid the groundwork for a revolution in alternative risk financing. Companies tired of facing high premiums, low...
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British Virgin Islands
Location: Caribbean Total Captives: 260 Capitalization: Long-term business: U.S. $200,000. General business: U.S. $100,000 plus minimum margin of solvency based upon net premium written, as follows: NPW less than $500,000: $100,000. NPW between...
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Current Trends in Toxic Tort Litigation
Mass tort litigation stemming from occupational risks is changing focus as a result of the asbestos debacle, which is morphing into other occupational risks. While courts are beginning to narrow the opening for maintaining asbestos cases and legislatures...
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Datebook
departmentsWorld Risk and Insurance Economics ConferenceAugust 7 - 11; Salt Lake CityThis first annual World Risk and Insurance Economics Conference will be jointly hosted by the American Risk and Insurance Association, the Geneva Association and the...
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Fugitive Daewoo Executive Returns
After fleeing the country six years ago, Daewoo's former chairman Kim Woochoong has returned to South Korea to face fraud charges in relation to the company's collapse. Kim had been one of South Korea's most respected businessmen dating back to...
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Guernsey
Location: Western Europe Total Captives: 313 Capitalization: General business: 100,000 [pounds sterling]. Long-term business: 250,000 [pounds sterling]. Insurance managers and intermediaries: 10,000 [pounds sterling] Fees: Application fee:...
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Here Comes the Science: Understanding the Technologies Used to Remediate Organic Pollutants
The contamination of soils and ground water by persistent organic chemicals riot only presents a risk to human health and the environment, it also poses a great source of financial risk to the parties responsible for the cleaning up these pollutants....
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Ireland
Location: Western Europe Total Captives: 165 Capitalization: 635,000 [euro] Fees: Application fee: 5,079 [euro] for direct captives; no fee for reinsurance captives. Supervision fees: Between 635 [euro] and 31,743 [euro], depending on premium...
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It's a Bird, It's a Plane
For pilots, collisions with birds have been a very real threat almost since the advent of airplane flight. The first recorded instance of a bird strike was reported in 1905 by the Wright brothers when Orville Wright struck and killed a bird that was...
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Luxembourg
Location: Western Europe Total Captives: 260 Capitalization: Minimum of 1.225 million [euro] Fees: 4.000 [euro] incorporation fee plus 1% tax on capital Investment Restrictions: No explicit restrictions, but investment policy must be approved...
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Nevis
Location: Caribbean Total Captives: 150 Capitalization: Class A (single-owner): $10.000. Class B (2 to 4 owners): $20.000 Class (2 (5+ owners): $50.000. Reinsurance captive: $7%000. General insurance captive: 185.000. Long-term insurance captive:...
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South Carolina
Location: Southeastern United States Total Captives: 119 Capitalization: Pure captive: $250,000. Association captive: $700,000. Industrial insurers: $500,000. Sponsored captive: $1 million. Capital may be an irrevocable letter of credit issued...
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Successfully Appraising Commercial Insurance Losses
A few years ago, I testified as an expert witness in an insurance matter at the federal court in Toledo, Ohio. On my long drive home, as is always the case after these occasions, the thoughts of my testimony were pouring through my mind. Did I communicate...
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The Case for Claims Made
Risk managers ultimately must determine the extent to which the enterprise will seek to transfer risks to insurers, in whole or in part. In so doing, they must consider not only the ability to control risks, but also the ability to recover from others...
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The Growing Role of the Coordinating Office
Given the complex and fast-changing nature of international insurance--different legal systems, policy coverages, market practices, time zones and catastrophe exposures--it is difficult for corporate risk management departments to manage worldwide...
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The Virtues of Treachery
My favorite board game is Diplomacy, which was first published nearly 50 years ago and has since developed a passionate cult following. Rumor has it the game was avidly played by John F. Kennedy and Henry Kissinger, as well as senior Pentagon officials....
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Turks & Caicos Islands
Location: Caribbean Total Captives: 95 Capitalization: Variable according to size of company, type of business written and expected loss ratios. Minimum of $100,000 for companies writing general business, $180,000 for those writing long-term...
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Turning Risk into Reward: Navigating a New Course toward a Return on Risk
Is it time to think differently about risk? What if the risk perspective was inverted and looked at not as something to avoid, but as something that to manage for competitive gain? What if, in today's litigious environment and lingering hard market,...
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What Happened to the Rogue Underwriters?
When we entered a softening market back in the "good old days," there were always insurers who would blaze the trail by deeply discounting rates. These companies were almost always staffed by a senior rogue underwriter who would try to make a name...
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Why Are They Asking for So Much Collateral?
In response to changing insurance markets, and the premium costs associated with them, many customers turn to alternative market insurance products including, but not limited to, deductibles and captives. One obvious attraction is a reduced premium...
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