Steel City Re’s reputation risk services include parametric reputation risk insurances and advisory services using a risk management framework informed by behavioral economics. Fully deployed, the solution tells stakeholders a simple, credible and completely convincing story that manifests in measurable benefits including stock price and credit cost optimization; reduced fines; successful Caremark defense pleadings; and more.

Quantitative, bespoke, and objectively selective

Steel City Re’s services help manage expectations, mitigate anger and disappointment, and parametrically indemnify fortuitous losses.

Risk Assessment

As the thought leader and exclusive provider of parametric reputation risk insurances and advisory services using a risk management framework informed by behavioral economics, Steel City Re first wrote the books on the subject over a decade ago. Since then:

* Our technology-driven quantitative rigor has been proven highly effective by financial markets in both insuring and arbitraging reputation risk; and

* Our innovative application of behavioral economic principles in our reputation risk management framework is presciently similar to elements of BlackRock’s 2021 proxy voting guidelines.

Our reputation risk services begin with a reputaiton risk assessment.

Risk Management (ERM)

Reputation risk is an enterprise-wide family of perils requiring a systems solution comprising a process distinct from operations risk management, marketing, or crisis communications, yet seamlessly dovetailing with them. Steel City Re has solutions for reputation risk governance and enterprise-wide reputation risk management that empowers a firm’s risk management apparatus with policies, practices, procedures, communication tools, and indemnification instruments.

Parametric Insurance

Dread of reputation risk permeates boards’ concerns about governance, counsels’ about compliance, institutional investors’ about equity risk, bond raters’ about credit risk, and others about ESG risk. Steel City Re’s reputation premium finder can help companies insure, manage, and arbitrage reputation risk with quantitative rigor..

Reputation insurances, approached on a parametric basis, addressing emerging risks and ESG compliance; and exploiting the power of captives, can profitably counteract the multiple negative effects of the current hardening P&C market.

A typical solution for reputation value loss may be anchored by a captive for risk retention and transfer with insurance policies led by the Lloyd’s syndicate, Tokio Marine Kiln. All Steel City Re risk financing and transfer policies are triggered parametrically. Separate additional towers for non-damage business interruption, crisis management, and related losses can be readily integrated, creating a more robust financial solution.

D&O 1st Party

Derivative litigation strategies engineered to crush puffery defenses without offending Caremark are new and menacing; but for boards that oversee and monitor risk, innovative governance, leadership, controls and insurances can thwart these perils.

Marchand v Barnhill and In re Signet heralded reputation risk’s breach of boardroom doors. D&O coverage is insufficient to protect Directors and Officers against personal reputational damage caused in the court of public opinion. Steel City Re offers solutions for directors and officers who wish to oversee and monitor aspects of their operations that may be deemed “mission-critical”; i.e, ethics, innovation, safety, security, sustainability, and quality.

In September 2021, Steel City Re introduced ESG Insurance. Backed by the Lloyd’s syndicate, Tokio Marine Kiln, the policy pays for extraordinary “strategic managerial and governance actions signaling corporate values” that may arise in the context of an ESG crisis.

A prudent ESG strategy comprises two elements: (1) No-nonsense quality management processes for setting, managing and tracking evolving expectations; and (2) Insurance for ESG-linked reputation loss for if and when those management processes or their oversight fail fortuitously.