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Insurer Expertise

(Prevention visit - RCCI - Vulnerability audit)

Insurers prevention visit

In the context of industrial risk insurance, a risk prevention visit known as vulnerability analysis is carried out regularly.

 

This visit is generally carried out by a prevention engineer with solid technical and regulatory skills, and preferably also with operational and industrial experience. The objective of the prevention visit or vulnerability analysis is to better discern the constraints and production requirements of the insured to guarantee a pragmatic and realistic approach.

 

Based on the existing situation, the prevention visit provides areas for improvement in terms of preventing operating losses directly linked to the various risks: Fire / Explosion, Machine breakdown, Climatic events or even a malicious or even terrorist act...

Identification of risks

Risks are the circumstances which occurrence can appear problematic and jeopardize the smooth running of the company's business. Its identification goes through the analysis of the causes of the problem. In this case, we speak of risk factors or by the analysis of the problem itself, we then speak of a risk object.

Risk evaluation

Once identified, the risks should be assessed according to the severity of the potential losses and their likelihood. The vulnerability analysis must make it possible to prioritize the risks in terms of operating loss and to quantify the financial impact for the operation in the event of an occurrence.

The important thing is, therefore, to carry out the best possible assessment to effectively prioritize the various implementations of the risk management plan. The greater the estimated loss and the more likely the event will occur, the worse the risk. The risk assessment is based on 2 components: a statement of generating events, which are not necessarily linked to regulatory deviations, and the inventory of dangerous points which varies according to the engineer's feelings.

Generating events are facts or causes which may be at the origin of a claim. The identification of the triggering events makes it possible to define the preventive measures likely to reduce the probability of occurrence of a disaster.

 

Dangerous points correspond to installations, equipment or activities on the site or in the vicinity, where damage may occur as a result of an operative event, the consequences of which will be serious for the property, activity or environment of the company.

The identification of the dangerous points makes it possible to locate the risk zones, to assess the potential seriousness of the disaster and to adapt the prevention and protection measures.

How does a prevention visit take place?

Progress of a prevention visit:

  1. Before the visit: sending the client a list of documents (annual report, asset values ​​to be insured, list of critical items, floor plan, process diagram, organization chart of services, etc.) that he must provide and make it available to the prevention engineer from the start of the visit. Validation of the visit program.

  2. First day of the visit: kick-off meeting - a reminder of the principle and progress of the expertise

  3. Next day(s): realization of the visit of the whole site. Inspection of the premises and the process in the company of the various managers (maintenance, production, engineering, HSE, etc.). The idea is to warn about risky situations and to provide solutions based on an exchange with the various interested parties for the sake of transparency and the feasibility of the proposed recommendations.

  4. At the end of this visit: a closing meeting is held. The purpose of this interview is to highlight the positive points and present the risks that have been identified and to see to what extent improvements can be made.

  5. Drafting of a report: this report offers the customer the various comments and solutions to be implemented to improve his risk prevention.

Components of the vulnerability assessment

Risk of fire and / or explosion

  • Electrical malfunction

  • Hot spot work

  • Human error

  • Consequences of lightning

  • Imprudence of smoker

  • Malicious act

  • etc.

  • Failure of a piece of machinery

  • Design flaw

  • Lack of control and / or maintenance

  • Corrosion

  • Human error

  • Indirect consequences of lightning

  • Malicious act

Machine breakdown

Natural or other events

  • Earthquake, tsunami, land collapse

  • Storm, cyclone, hurricane, thunderstorm

  • Winter phenomena

  • Flood

  • Aircraft crash

  • Water damage

  • Social movement, riot, attack

Estimation of values to be defined in the insurance contract

MPL: Maximum Possible Loss

The Maximum Possible Loss corresponds to the estimated losses following an accident if nothing is done to avoid or combat it. The MPL assesses the maximum amount to which a company could be exposed. It must take into account interactions (domino effect). It represents the maximum amount of damage that a single claim can cause when the most unfavourable circumstances are met. This assessment is carried out for the fire/explosion risk as well as for the risk of machine breakage.

RDL: Reasonably Discountable Loss

The Reasonably Discounted Loss corresponds to the estimated losses following an accident when the prevention and protection are effective. The RDL is deduced not from the MPL, but the MPL scenarios, on conventional bases. This concept is particularly essential for setting reasonable coverage limits in general liability insurance.

  • Risk prevention visit for cement factories in Nigeria, Iraq, Ivory Coast and Benin

  • Risk prevention visit for SOGARA Refineries in Gabon and SIR in Côte d'Ivoire

  • Steelworks, metallurgy factories

  • Plastics, compounding, production and sale of chemicals factories

  • Agri-food factories and cold stores

  • Logistics and transport bases

  • etc.

Here are some examples of missions carried out by PDCA ENGINEERING:

Secourisme Normandie

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