COMPOSITE INSURER CONSIDERATION AND ATTITUDES ON ENVIRONMENTAL MANAGEMENT SYSTEMS CONCERNING PUBLIC LIABILITY POLICIES FOR POLLUTION RISKS

Pollution can incur costly clean-up programmes, erode company profits, and undermine governmental policy towards sustainable economic development. Governments and insureds are inquiring about insurance and environmental management systems (EMSs) to help prevent, control, and compensate for the risk of pollution. There is little analysis on using these instruments in defence of the environment. This issue is explored in a workshop and survey questionnaire on EMSs and public liability insurance concerning pollution risks in the UK market. EMSs might provide risk and claims assessment information, reduce pollution risks in the long term, and lead to comparatively lower insurance premiums. Insurers' rating, assessment, investigation, statistical and education work with regard to pollution risks is in its infancy and there is little knowledge, poor recognition and low confidence in EMSs. Political, practical, economic and legal problems impede insurers' capacity to reply positively to pollution risks and EMSs. Failure to overcome these issues reduces the insurers' and insureds' ability to prevent and control the risk of pollution and lessen its aftermath of detrimental consequences.