Eli Lilly defused a tweet-induced reputational crisis. […] In the days since that event took place, Lilly’s stock underperformed the S&P and underperformed some of its pharmaceutical industry peers. Why the lingering effect on Lilly’s stock price? What could it have done differently? What could a company in its position do now? And how could have third party (insurance) authentication played a strategic role?
In San Jose, Calif….on Jan. 1, the city will begin requiring gun owners to carry liability insurance to compensate victims harmed by the negligent or reckless use of a firearm. The behavioral economic properties of insurance have long successfully nudged social change.
To follow the quality of risk management, follow the insurance money: Insurers are denying or limiting coverage to clients with exposure to bankrupt crypto exchange FTX, leaving digital currency traders and exchanges uninsured for any losses from hacks, theft or lawsuits, several market participants said. […] The FTX collapse will also likely lead to a rise in insurance rates, especially in the U.S. D&O market, insurers said. The rates are already high because of the perceived risks and lack of historical data on cryptocurrency insurance losses.
ESG-related false advertising litigation. Since the onset of 2021, there have been multiple class actions filed in federal courts over greenwashing claims targeting companies from the retail industry, such as H&M and Allbirds, and food manufacturers, like Vital Farms. The statements attacked by consumers in these lawsuits varied due to the wide-ranging nature of the marketing techniques used by the companies, including the use of internal sustainability metrics as well as the reliance on benchmarks created by third parties.
Parametric insurance grows in importance. In a session at the Cayman Captive Conference 2022 Eddie Brooks, associate director of Alternative Risk Transfer Solutions at WTW, looked at how index-based, or parametric, insurance has emerged over the past two decades as a risk transfer mechanism with particular application to emerging risks resulting from the climate and nature emergencies. A parametric insurance policy—one that is triggered and insures to model—makes ESG coverage possible.
Mitigating an expectation shift: An effective, thoughtful risk strategy. Of the many on offer, only our solution is quantitative, battle-tested, quality management-proven, and grounded in four Nobel Prize winning insights. The bottom line: mitigating costly reputation risk by targeting factors that would lead to a shift in expectations
Parametric insurance ESG authentication. Parametric insurance, which has long been popular in disaster recovery, is gaining steam as a proxy for proving the effectiveness of ESG programs. Nir Kossovsky and Denise Williamee of insurer Steel City Re explore details of this novel ESG solution. Insurance-based authentication — a regulatory lynchpin — is a recent innovation made possible by parametric insurance solutions.
Captives for ESG Goals. Nir Kossovsky, CEO, Steel City Re, said organizations that form captives can use them to cover risks in an ESG-friendly manner, which will help them reduce reputation risks.
Parametric ESG-linked Reputation Insurance. Stakeholders and regulators scrutinising companies making ESG-related policy commitments are leading to more interest in insurance designed to cover such risks: Steel City Re.
Captives for a Challenging Market. Mitigating risk strategically through expectation management and operational adjustments evinces thoughtful management and dutiful governance. Financing such risks evinces prudence, and doing so publicly with insurance captives and reinsurance enables stakeholders to appreciate and value the effort. These comprise the core of Steel City Re’s professional services