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Over the last two decades, the approach to property risk control has been heavily reliant on insurance carriers to dictate the services and provide direction. Today, though, companies are taking a proactive role, assuming more control of their programs, and setting a direction focused on business goals and objectives.
The impairment or destruction of a company’s operational capability can negatively affect shareholder value just as ruthlessly as a reputational incident. Organizations are realizing that the old, reactive model of simply relying on the carrier to design an inspection program does not meet their need for a comprehensive, consistent property risk engineering program.
Corporate governance responsibilities, rising costs, and an insurance market that demands more property inspections are only a few of the issues that operational executives are facing daily. From fires and floods to windstorms and terrorist attacks, forces that can lead to property loss are largely unpredictable. The consequences of such forces, however, are all too clear.
Marsh’s Global Engineered Solution (GES) helps companies manage the onerous task of identifying, quantifying, and managing property risks. GES puts the organization in control of the design of its loss control program. The specific advantages to working with GES, rather than relying on the antiquated carrier model, include:
- Ownership of the design, implementation, and management of all aspects of the program
- Ability to meet multiple internal customer needs with a single program
- Ability to expand the scope to address specific business issues
- Access to industry specialists located around the global that know specific businesses
- A cost-effective and competitive global service delivery model with repeatable, consistent processes designed to maximize resources and capital
- Real-time data from operations that can be benchmarked against best practices
- Web-based data management and reporting
- Superior, customizable technology
- A program specifically designed to meet insurance market requirements
What Will You Say When They Ask What Happened?
In today’s uncertain environment, mitigating property losses hinges on the ability to effectively identify, quantify, and manage the full spectrum of physical, financial, and operational risks affecting real assets. A loss control program should be designed by the organization to meet its objectives effectively and efficiently. Executives responsible for ensuring continual operations should be asking themselves the following questions:
- Does our loss control program meet our objectives effectively and efficiently?
- What are the key drivers of risk by peril, by geographic region, and/or by business unit?
- Is my data quality adequate? How could it be improved?
- Where is the best return on my investment of capital and resources?
- Do we have a program that considers what is best for our specific business?
- Are we using the latest technology to gather and analyze all of the relevant property risk data?
- What are the costs and benefits of the various risk mitigation/transfer options available to me?
- Do we have the proper processes and business metrics in place to ensure continuing operations in the event of a catastrophe?
Who’s Looking Out for You?
GES is an integrated and comprehensive property risk mitigation, transfer, and control consulting solution, designed with an organization to meet a multitude of internal needs. In addition to re-aligning the traditional insurance-mandated property loss control services with a client’s overall business risk objectives and providing a comprehensive approach to developing mitigation and control strategies and solutions, GES meets the requirements of property insurance underwriters. Utilizing the best technology tools and platforms currently available, GES is customer-focused, global, and delivers consistent high-quality solutions.
GES provides an organization with the ability to:
- Control and design a program to meet its specific needs
- Capitalize and maximize on the data and information from site visits
- Prioritize resources and capital expenditures
- Minimize redundancies
- Prioritize resource and capital commitments
- Build a dynamic and flexible program
- Validate returns on investment and prioritize recommendations
- Establish a property risk control program and direction that positions a firm as a quality risk
- Establish a continuous improvement process that measures results
- Provide the ability to benchmark between plants
Technology is one of the key elements within GES. Web-based applications, field applied technology to collect data and publish reports, and the ability to benchmark brings the state of the art to GES. Key features of GES technology include:
- STARSTM — property data management and recommendation tracking tool
- TrendTrackerR — auditing applications
- Web-based impairment reporting system
- Marsh Connect — account management and communications
The technology behind GES allows for measurable results — such as cost savings, improved data quality and consistency, and increased response to recommendations — because the information is available almost instantly to the various facilities after an inspection. Managing data and maximizing technology will allow for benchmarking, which, in turn, drives program and process improvements.
If you have any questions or would like additional information, please contact us.
If you are seeking information about insurance and related services, please visit marsh.com.
If you have any questions or would like additional information, please contact us.
If you are seeking information about insurance and related services, please visit marsh.com.
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