INSURER PERCEPTION OF ENVIRONMENTAL MANAGEMENT SYSTEMS REGARDING INSURANCE FOR POLLUTION

This paper explores the use of insurance and environmental management systems (EMSs) to prevent and control the risk of pollution. To assess this issue, a series of interviews with insurers was conducted to find out their opinions and attitudes on EMSs about insurance for pollution. The main scope of the research is composite insurance, public liability and EMSs, within the UK market. Insurers' believed that EMSs could theoretically help insureds and insurers, respectively, prevent and control, and assess and settle pollution. However, there is little evidence to support this assertion. Moreover, EMSs assess pollution incompletely from the insurers' point of view. Furthermore, insurers' initial assessment and post loss investigation of pollution are generally not well developed, and there is little knowledge about and poor recognition of EMSs. Economic, practical, legal and political issues hinder insurers' ability to respond positively to EMSs. Therefore, insurance and EMSs are insufficiently developed to play a lead role in lessening the risk of pollution.