RUSRISK SEMINAR ON ENVIRONMENTAL INSURANCE

Timothy Bibbs and Evgeny Krylov were glad to attend Comprehensive Environmental Insurance: Challenges and Perspective seminar that was organized on November 24, 2021 by the Risk Management Association RusRisk and the Institute of Foreign Affairs of the RF Ministry of Foreign Affairs (MGIMO MID RF) as part of the series of seminars named Topical Issues of Insurance Coverage of The Large Industrial Companies.

The speakers addressed the aspects of environmental insurance that nowadays are becoming more and more acute. At the same time, the main task is developing efficient insurance programs in the field of ecology. Most of the speakers agree that currently there is no insurance product that would provide a comprehensive coverage against this kind of risks. Lack of such product is attributable, for example, to the fact that there is no consistent approach in answering the questions related to the valuation of an environmental risk, the scope of damage that can cause such risk, the methodology of calculating the EMLs in monetary terms etc. Law firms’ representatives have drawn attention to the lack of a legislative framework that would make payments of the imposed penalties possible in full within the coverage of an insurance product. Besides, the laws regulating the insurance activities in Russia do not have a comprehensive address to the issue of Causing Harm to the Environment.

We believe that the issues raised during the discussions are of great importance and they   should be duly developed; the solutions for creation of a  working insurance product should be worked out. We will continue participating in the seminars on the organization of the environmental insurance in Russia.

Environmental risks assessment is a promising area and Mensor Ltd. pays a close attention to the development of these activities.