Approach to risk has been challenged by 2011 catastrophes says Marsh

Marsh claims that the severity of casualty losses in 2011 has challenged established thinking on the nature of risk and that businesses need to re-examine their risk management strategies.

In a paper entitled Lessons Learned from the Catastrophes of 2011, Marsh identified five major risk and insurance topics arising from 2011: denial of access; strike, riot, civil commotion or terrorism; the differences between flood and storm damage; contingent business interruption; and 72-hour insurance notification clauses.

David Pigot, chairman of Marsh’s Global Claims Practice, commented: “While the risks associated with the events of 2011 were largely understood, their sheer scale and