Monthly Archives: April 2017

Environmental Liability Directive: FERMA’s views on the Multi-Annual Work Programme (MAWP) for 2017-2020

Click above to read the full statement

On 11 April, the Secretary General of the Federation of European Risk Management Associations (FERMA) Gilbert Canaméras presented FERMA’s views on the future of the European Environmental Liability (ELD) to a public hearing held at the European Parliament.

He was one of the speakers representing stakeholders who participated in the hearing: Implementation of the European Liability Directive: the way forward

For FERMA The Commission’s MAWP has the potential to consolidate and strengthen best practices for the existing ELD. FERMA calls on the Commission to foster the dialogue between Member States and operators in the most sensitive industries using the MAWP as a framework to improve implementation of the ELD.

FERMA recommends that this dialogue includes the promotion of risk management practices to reduce the environmental risk for sensitive sectors.

FERMA Secretary General Gilbert Canaméras at the European Parliament on 11 April 2017





FERMA continues to advocate against the introduction of an EU-wide mandatory financial security scheme. We believe capital resources are scarce and that current insurance voluntary systems are working well.

A register of ELD incidents is an interesting idea to increase reliable and comparable data about ELD incidents, but it should be designed carefully, notably as regards its availability and level of detail.

Video replay of the hearing  can be seen here (FERMA starting from 43’45”)













Pauline Davoust, Winner Rising Star of the Year, FERMA Awards for Risk Excellence 2016, tells why risk management is such an appealing career.

Pauline Davoust is the Risk Manager, gategroup, Switzerland and SIRM board member. 

FERMA: How did you get into risk management?

I started my career in underwriting and client management in reinsurance and then insurance for various lines of business and discovered the role of risk manager during the risk surveys of my clients.

What drew you to risk management as a career?

I wanted to be closer to all the types of risks that a company is facing, to be able to change their nature and to find the best ways to mitigate them. The interesting part of risk management is dealing with the continuous changes of the environment which affect a company and find solutions. Receiving the first “Risk Manager Rising Star of the Year” award from FERMA confirmed for me that it was the right career choice, and it means a lot to me.

What is your education background?

I studied business administration in France, Sweden and Germany and specialised in insurance during my last year of study.

What do you think can make risk management an attractive choice of career for someone leaving university?

I believe that risk management is equally important to all the other key managerial roles in a company. In addition, it offers very good insight of the “health” of a company and provides interaction with all levels and departments. For these reasons, it makes it a very good career choice.

What do you think are the most useful skills for someone starting in the profession?

In my opinion, someone has good analytical skills, a fast understanding of risks and the ability to think outside the box, and who is solution-oriented can step into a risk management role and learn on the job. In addition you need to be able to communicate at all levels of a company, in various languages sometimes, and also to external stakeholders.

What are your career goals over the next five years?

In my vision, the role of a risk manager will be as fully integrated a process in the company’s strategy as the other key functions, and I will be dealing primarily with emerging risks. An obvious example is cyber risk which has become part of our daily risk landscape; however, the industry still has a long way to go towards full understanding.

Newsletter 76 – all articles

Expert view – Managing shocking events

Laurent Taymans, Regional Medical Director International SOS

On 22 March, a man deliberately drove into pedestrians on Westminster Bridge and then stabbed to death a policeman outside Parliament. It was the anniversary of the double terrorist attacks in Brussels in 2016. Less than two weeks later, a bomb exploded in the metro in St Petersburg. Paris, Nice and Berlin have also been targeted within the last two years.

Brutal attacks on the ordinary activities of people in a city, travelling to work, enjoying a concert, walking across a bridge or taking the metro, are shocking – just as the terrorists intend them to be. The risk manager needs to prepare for such events, even if they are improbable, and consider all employees – whether at work, on their way to or from work, or taking a break when working away from their base.

In our work, we see two types of employer: the few which regard this as outside their responsibility if the person is not travelling on business as terrorism is likely to be excluded from their liability, and those who recognise it as an element of their duty of care for their employees, even if the person is not at work.

The employer needs to know where people are and should be able to identify any who have been injured or killed, taking into account that health facilities in the vicinity of the attack may be overwhelmed. Ordinary communications can also be disrupted, either by the security services or simply because of heavy demand.

In the past, travel tools have not necessarily been tailored to these events, but this is changing. Being able to warn other employees in the area that there has been an incident is also important, both for their sake and to reduce disruption.

If someone has been injured or killed, families are likely to turn to employers for information and help, and there will be a lot of frustration if this is not well managed. The rest of the workforce is likely to react negatively if it believes the employer has failed in its duty of care, no matter what exclusions there may be for liability. This is the time for the CEO to show leadership. He or she needs to be decisive and humane. The crisis management team should be doing its job.

Finally, the potential business continuity implications need to be included in the planning. There can be significant logistical and administrative complications, depending on the location and extent of the event. Property damage, denial of access to premises, transport closures, and travel and shipping delays due to increased security are all possible consequences.

Here are the key steps:

  • Identify workers directly affected by a terrorist incident.
  • Communicate warnings to other employees in the area.
  • Take a duty of care, not a strict legal liability, approach.
  • Remember the effect on other employees if people have been killed or injured.
  • Plan for possible business interruption.

These elements all need to come together in managing improbable but shocking events. Doing it well can be a key differentiator for an employer.

FERMA and International SOS are conducting research into today’s travel risks for a report ”Workers on the move: Managing new risks” to be published at the 2017 FERMA Forum.

There is still time to contribute by completing the one minute survey! 

See also:

Airmic, International SOS and Control Risks have also produced a new guide on travel risks:

Michaël Dehert, winner of the 2016 Innovative Insurance Programme award, saw his programme tested severely on 22 March 2016 when terrorists attacked Brussels Airport. As Michaël says: “You only get to know the true meaning of policy wording, (sub-) limits and coverage during the handling of such a catastrophic claim.” Read more about his experience.

President’s column

On the day that Britain formally began the process of leaving the European Union, Lloyd’s announced it would open an office in Brussels so it could provide uninterrupted service to continental European customers. This was clearly not an overnight decision. Since the announcement of the referendum, the UK insurance industry has been contemplating how an ‘out’ vote would affect it.

Lloyd’s especially and the UK industry were generally disappointed by the result of the referendum on 23 June 2016. Although global markets, especially North America, traditionally have been more important sources of business for London than continental Europe, the insurers have wanted to build more links with the rest of Europe, taking advantage of the single passport. They had already gone to the expense and effort of implementing Solvency II. FERMA itself gained in a small way from the market’s development of its links with the rest of Europe through a joint training programme for newer risk managers with Lloyd’s.

In today’s competitive global insurance market, no insurer wants to give up a solid block of business, so the move by Lloyd’s was not a surprise. Speaking for FERMA as a Brussels-based organisation, we were delighted by the choice of location. A potential increase in costs must, however, be a concern for them. Like Switzerland and Bermuda, the UK will need a regulatory regime that is either Solvency II or one which the EU recognises as equivalent to maintain joint recognition. In any case, the trend is toward global solvency standards. It is increasingly difficult for insurers to compete through regulatory arbitrage.

For continental businesses, London is not a bulk market, but a valuable source of capacity in terms of expertise, innovation and higher limits that we would not want to lose. For our companies, there is going to be some uncertainty in terms of compliance, especially on global programmes, during the two years before the UK finally leaves the EU. However, London has been an international insurance market for hundreds of years, and we are confident that the insurers are focussing on the best ways to maintain service to their customers.

Knowledge Corner


Future Cities, Building Infrastructure Resilience

Lloyd’s and Arup (English)

Cyber Risks

Cyber Security Risk Predictions Report

Stroz Friedbert (Aon) English


Global Claims Review Liability in Focus

Loss trends and emerging risks for business

Allianz Global Corporate & Specialty (English)

Global Risks

Risk Barometer 2017

AGCS (English and German)

Natural catastrophe/business interruption

The Destructive Power of Volcanic Ash Fall

Swiss Re (English)

Political risks

Risk Map 2017

Control Risks (English)


Global Terrorism Database (to 2015)

US Department of Homeland Security/University of Maryland


GVNW (German)

Die Versicherungspraxis


European News – Lower threshold proposed for CbCR draft text

In a first draft report released in February 2017, MEPs the two Members of the European Parliaments in charge of this dossier proposed to lower the turnover threshold to €40 million to include even more organisations, even though the €750m threshold had been agreed at OECD level to ensure a global level playing field.

The Commission stated that because 90% of corporate revenues in the EU were covered by a €750m threshold, the objective of CbCR would, therefore, be reached. It would also avoid creating new red tape for the SMEs which would be caught by the €40m turnover limit.

The OECD and the BEPS recommendations were a great step forward in finding the right balance between increased corporate transparency and a global level playing field. For the attractiveness of the EU, it seems crucial to remain in line with the agreements made at global level.

The European Parliament will adopt the report in committee at the end of May, opening the dialogue with Member States at the Council for a final adoption by the end of 2017.

European News – Country by country reporting: a preview

On 27 March 2017, the international NGO OXFAM published a report Opening the Vaults, which provided an analysis of financial information of the top 20 European banks on a country by country (CbCR) basis.

Focusing on tax jurisdictions where banks disclosed a high level of profits despite a small local presence or level of turnover, the report attracted broad and quite negative media coverage for the banks. For risk managers, this event is a concrete illustration of the damaging potential of country by country reporting for the reputation of their organisation.

This report was possible since a set of transparency rules, adopted in 2013, required European banks to report information on tax and profits for every country they operate.

A similar proposal from the European Commission that would extend CbCR to every organisation with a turnover of more than €750 million in any sector of the economy is now currently under discussion at the European Parliament.

Letter from Brussels

The EU at a political, economic, social and emotional turning point

Two very significant events took place in the European Union in March. On 25 March, the EU celebrated the 60th anniversary of the signing of the Treaty of Rome, which started the process of European integration. On 29 March, the British Prime Minister, Theresa May, triggered Article 50 confirming the UK’s intention to withdraw from the EU. Britain will leave the single market, the customs union and the European Court of Justice.

Elsewhere, too, we see converging trends for less Europe. There is rising populism, nationalism and euro-scepticism, fuelled by concerns about migratory pressures, globalisation, social alienations, economic inequality, and terrorism.

Faced with these looming difficulties, the 27 heads of state and government meeting in Rome on 25 March sent a clear and strong signal to the European citizens and the world: “Europe is our common future.” More, rather than less, Europe is needed. They adopted the Rome Declaration setting out a joint vision for the years to come. “We will make the European Union stronger and more resilient, through even greater unity and solidarity amongst us and the respect of common rules.”

For the EU, this is an opportunity for renewal and political consolidation:

  • There will be a lengthy and difficult negotiation with the UK but then for a new relationship
  • The UK’s departure does not mean that the EU will fall apart. For Guy Verhofstadt, the European Parliament’s chief Brexit negotiator, if there is a positive effect of Brexit, then it is a wake-up call for EU leaders to get their act together. To keep Europe together, he believes, is a complete overhaul of the union is needed.

Times of change create risks and opportunities. Join us for our panel discussion European at a Crossroads at the 2017 FERMA Forum when experts from different sectors will consider whether Europe will take a new direction or find itself at a standstill.

Visit our European Risk Management Forum 2017 website


Typhaine Beaupérin, CEO











Launch of 2017 Excellence in Risk Management Awards

Nominations are now open for the second Excellence in Risk Management Awards. These four awards are exclusive to members of FERMA associations:

  • Risk Manager of the Year
  • Lifetime Achievement
  • Rising Star
  • Innovative Insurance Programme of the Year

The deadline for entries is 28 July.

The 2nd European Risk Management Awards programme will take place in London on 6 November 2017. FERMA supports the awards, made in cooperation with Commercial Risk Europe, to raise the profile of the contribution made by the risk and insurance community to the success of European organisations.

Michaël Dehert, winner of the 2016 Innovative Insurance Programme award, saw his programme tested severely on 22 March 2016 when terrorists attacked Brussels Airport. As Michaël says: “You only get to know the true meaning of policy wording, (sub-) limits and coverage during the handling of such a catastrophic claim.” Read more about his experience.