Press release on IMIA Conference
IMIA, The International Association of
Engineering Insurers held its 39th annual Conference in
This year’s President
and host, Mike Petruzzello (Hartford Steam Boiler) welcomed the 64 Delegates
from 20 countries to the Boston conference and Chairman Detmar Heidenhain
(Munich Re) opened the three days meeting stating details of the progress IMIA
has made in the past year in the exchange of knowledge and experience and producing
and providing useful technical information for Engineering Underwriters. He
thanked all for their work and the quality they have put into fulfilling this
task of IMIA.
Five new IMIA papers
were presented:
The one dealing with offshore wind power illustrates the
technical problems which add to those known from wind farms on land, but
shortage of conventional energy sources and the better wind conditions for offshore
installation make this technology promising. Insurers need to know the risks
involved. It is a challenge to the power industry as well as to insurers.
The second paper
reports of the construction techniques used for road construction and of the exposures of these works mainly to
natural hazards. Water damage by heavy rainfall is the foremost problem to be
handled, and this is well illustrated. The paper suggests a close risk analysis
and ongoing risk monitoring.
In the third paper the
working group reports of the past experience with tunnel construction projects and gives a shocking loss figure for
material damage and an even worse scenario, if these projects had all been
insured for ALoP (Advance Loss of
Profits). Request for such cover was denied in most cases, but requests are
getting stronger for privately financed projects. The paper tries to make
underwriters aware of the enormous loss potential and the challenge one would
be faced with. One of the suggestions is the requirement of best practice in
risk analysis and management which can be helped by applying the Code of
Practice for Tunnelling Works which is also available on the IMIA web site.
Another paper
describes the latest development in the pulp
and paper industry and the hazards involved for engineering insurers. It is
an excellent paper for the insurer in respect of risk analysis and inspections
as it provides for all main equipment a specific check list of essential
questions. Evidently these are equally important questions to the operator.
The last of the five
IMIA papers discusses the pros and cons of Break
and Review clauses as may be applied for long-term contracts between 5 and
15 years, cases where an underwriter faces problems in properly judging risks
lasting so long and be sure that the same conditions are adequate throughout
the full period. The discussion is well balanced in respect of the interests of
the insurer as well as the insured. Good risk analysis, qualified risk
management and a clear definition of the term “material change” are the
essential points for a professional and well working insurance cover for
long-term projects.
Other presentations at
the conference referred to Engineering insurance statistics of IMIA Member countries and special topics presented
by guests like the highly interesting Big Dig project in
Five new topics of
interest were suggested and new working groups formed to elaborate respective IMIA
papers until next year’s conference.
The next IMIA
conference will be held in