Tag Archives: religion

How to Develop Plan on Terrorism Risks

Terrorist and other mass violence attacks, which occur with alarming regularity around the world, can threaten your people, operations and assets. Many companies look to insurance — mainly property terrorism and political violence coverage – to help manage the financial impact of these risks, which can include property damage and business interruption losses.

Terrorism Insurance or Political Violence Coverage?

Property terrorism insurance provides coverage for the physical damage and business interruption that can result from acts that are motivated by politics, religion or ideology. Political violence insurance provides coverage related to war, civil war, rebellion, insurrection, coup d’état and other civil disturbances.

Choosing which coverage – or combination – is best for your organization can be tricky. The line between what is considered “terrorism” and what is considered “political violence” is often blurry. For example, should attacks by particular groups be classified as acts of terrorism, or another form of political violence?

To help determine the best insurance program to manage these risks, here are a few things to think about:

  • Ensure the limits of insurance that you buy provide enough protection for multiple loss scenarios.
  • Review the location of your assets to determine the appropriate insurance solution.
  • Understand the policy terms, conditions and limitations of terrorism and political violence insurance.
  • Work with your advisers to understand your property and employee exposures so you can make an informed decision or mitigate potential losses.

Addressing the Risks

Along with insurance considerations, of course, you need to ensure the safety of your employees with integrated and well-practiced crisis and continuity plans in the event of a disaster. Events from terrorist attack to natural catastrophes can cause significant business interruption (BI) losses. Steps to take to manage BI risk include:

  • Develop and test business continuity plans.
  • Conduct scenario testing.
  • Coordinate BI insurance with other coverages, including political violence and terrorism insurance.
  • Be prepared to gather appropriate information in the event of a claim, including recording damage via photographs and video.
  • Maintain separate accounting codes to identify all costs associated with the potential damage.

For more information on these topics, read Marsh’s 2015 Terrorism Risk Insurance Report and our political risk insurance report, Strong Capacity Drives Buyer’s Market for Political Risk Insurance.

3 Cardinal Rules for Managing EPL Risk

Last week, the U.S. Equal Employment Opportunity Commission (EEOC) released its data for FY 2014 for enforcement litigation related to employment practices liability (EPL). Continuing a recent trend, the EEOC reported that the percentage of charges that contained retaliation claims rose to a record 43% in 2014.

This is significant for EPL because the elements that an employee must establish with respect to a retaliation claim are quite different than the elements in a discrimination or harassment claim. Specifically, an employee does not need to establish that the employer discriminated against or harassed him to prevail on a retaliation claim. Rather, the employee only needs to prove that the employer took action against him in response to an internal or external complaint of discrimination or harassment that may deter the employee or others from lodging similar complaints in the future.

The EEOC report highlights that, for EPL, preventing retaliation is just as important as promptly addressing workplace complaints of discrimination or harassment.

A breakdown of all charges filed with the EEOC is as follows:

  • Retaliation — 43% of all claims
  • Race (including racial harassment) — 35%
  • Sex (including pregnancy and sexual harassment) — 29%
  • Disability — 29%
  • Age — 23%
  • Religion — 4%
  • Color — 3.1%
  • Equal Pay Act — 1.1% (but note that sex-based wage discrimination can also be charged under Title VII’s sex discrimination provision)
  • Genetic Information Non-Discrimination Act — 0.4%

In fiscal year 2014, the EEOC obtained $296.1 million in total monetary relief through its enforcement program for cases that were settled before the filing of litigation. Monetary relief from cases litigated, including settlements, totaled $22.5 million.


From a risk management perspective, the aggressive investigations and litigation filed by the EEOC only emphasize the need for employers to faithfully obey what we kindly refer to as Socius’ “Three Cardinal Rules of Employment Practices Risk Management”:

  1. Continually update employment practices (i.e., adapt personnel policies to always be current with the EEOC’s strategic initiatives, litigation trends and new statutes).
  2. Keep all management and supervisory personnel thoroughly and continually trained (this ensures a smooth implementation of procedures and education of management’s agreed strategies to respond to retaliation, harassment and other employment-related allegations), and
  3. Further mitigate this risk through the purchase of a robust EPL insurance policy.

Analytics: A Religion or a Beauty Contest?

I had the pleasure of attending a conference on analytics recently. It felt like a religious experience. As each speaker announced a new capability or widget, there was a respectful round of applause from the audience, many of whom, it must be said, work in the back offices of their organizations and probably aren’t allowed out in public very often.

My colleague, who is older and possibly wiser than me from time to time, whispered in my ear that it looked to him very much like a church gathering. The speakers were talking to the “believers” – those who had already got the analytics message and were looking for better ways to implement their insight. And what we had stumbled on wasn’t in fact an analytics conference, but rather a Church of Analytics.

It’s an interesting viewpoint. Isn’t the use of analytics in insurance – and indeed any industry – as much a matter of belief as of technology? A belief that the insurance industry is far too complex to be managed on intuition alone, that data-based insights are increasingly critical. ROIs are important for analytics, of course, but it’s as if you have to take that emotional leap of faith before signing up.

In fact, I’m sensing that organizations are making emotional decisions, then looking for an ROI calculation to justify their decision.

Oddly enough, when I first came into insurance a few decades ago, we used information to support decisions we had already made. If you look hard enough in the data, you can usually find that it supports even poor decisions. I hope that we’ve moved on a bit and now use insight to help organizations make good decisions, not validate poor ones.

What’s this got to do with beauty contests? It’s a brave (or stupid) man who offers an opinion on such a contentious topic, but the point I want to make is that there are those who still measure the quality of analytics by the quality of dashboards and reports. Effective use of analytics is much more than a pretty visualization, in the same way that judges at Miss World are now encouraged to think with a new perspective, about “beauty with a purpose.” Check out their site http://www.missworld.com/BeautywithPurpose/, which talks about supporting leprosy and autism projects and daycare units for the disabled.

Good visualization effects are important and help improve user consumption – but effective use of analytics means much more just than a pretty dashboard. It’s the ability to gain better business understanding, support (or create) business strategy and manage progress. As with Miss World, the beauty of analytics is more than skin deep.