Environmental Liability Insurance in Asia

News24xx.com - In 2016, the South Korean government introduced compulsory pollution liability insurance for companies that belong to specific industries. Implementing insurance requirements will improve risk management”, - says Arthur Lu, the head of «Allianz Global Corporate & Specialty SE».

China is preparing to introduce a similar scheme. The Ministry of Environmental Protection and the Chinese Insurance Industry Control Commission have issued a joint statement stating that companies involved in petrochemicals, dangerous waste disposal and dioxin production are urged to insure their liability.

Business and environment

The Allianz study of topical business risks, in which more than 1,200 companies from more than 55 countries participated, many of which are located in Asia, among the factors that could lead to a halt in activity were political unrest, changing of the climate. "It is important to clarify that traditional insurance covering business interruptions in the framework of property programs, as a rule, doesn’t affect environmental incidents", - said Lou.

Another global trend that can lead to negative consequences for companies is the growth of social networks. If in the past only the largest incidents or catastrophes were covered in the news media, then now even the smallest excesses can be brought to the attention of millions of people. Today, environmental protection and human health have become one of the most important topics in the media.