Insurance Business 10.03

Page 42



A sustainable strategy Tougher regulations, the rising cost of clean-up and restoration, mounting public pressure, the need to safeguard the planet – it all adds up to a distinct imperative for companies to efficiently manage their environmental risk, according to AIG’s Jason Thoroughgood and Keith Gardner 40

AWARENESS OF environmental issues is growing fast. Businesses that play nicely with the world around them can no longer expect to receive a pat on the back; the public increasingly expects companies to do the right thing. Added to this is increased pressure from active regulators to make polluters pay. This means companies need to reassess their approach to environmental risk management, says Keith Gardner, environmental team leader, Pacific, at AIG. “Organisations should stress-test their insurance coverage to ensure it responds as expected in the event of a loss,” he says. “Insureds think it will never happen to them, but quite clearly it can and does. We’re seeing a real gap in cover for insureds who may not believe that an environmental impairment

40-43_Sector Focus_Environmental-SUBBED.indd 40

14/05/2021 8:20:44 am

Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.