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Chubb warns on growing environmental risk

Businesses have been urged to employ multinational insurance programs for environmental risk as governments implement tighter regulations.

A new report from Chubb says risks such as property and casualty have established footholds in such programs, but environmental risk has been slow to follow.

Failure to manage environmental risk is increasingly costly for companies with global operations, the insurer says.

“All of this makes it more important to have a multinational insurance program in place to build in the local expertise required when operating across numerous territories and jurisdictions. Such a program helps the corporation ensure the correct coverage is in place across all jurisdictions, and the coverage is appropriate and consistent.

“This protects the company’s reputation in the event of a loss and helps the board have oversight of the risks and how they are managed from a centralised location.”

Chubb’s Global Management of Environmental Risk report is a collaboration with law firm Clyde & Co.