Client Risk Solutions Going beyond insurance Risk solutions for the Manufacturing sector Start
Partnering to Reduce Risk Manufacturers are faced with a myriad of challenges including a rapid pace of innovation, amplified regulatory pressures, global trade uncertainties, increasingly complex supply chains and greater customer demands. These challenges are leading to vulnerabilities and emerging risks that must be properly managed in order for manufacturers to operate efficiently and remain competitive. AIG s Client Risk Solutions (CRS) partners with our clients to lower their total cost of risk. We take a holistic approach to identify and manage complex risks through a broad range of consultative services, leading edge analytics and modeling, and an ever expanding suite of innovative technologies. Manufacturing risk profile Property Complex processes often in large production facilities with multinational footprints. People Highly skilled workforces exposed to a wide range of safety hazards. Performance Complex supply chains exposed to business interruption and cyber security risks. Market Segments Aviation & Aerospace Food & Beverage Forestry, Pulp & Paper Metals & Minerals Heavy Industry (Automotive, Machinery and Metal products) Consumer Goods (Apparel, Electronic Equipment, Furniture & Fixtures, Rubber & Plastic, Textiles) 2
Client Centric Analytics: From Insight to Response Client Risk Solutions takes businesses on a multi-stage journey through risk. From identifying and quantifying exposures to developing mitigation and response plans, CRS offers clients a continuous approach to managing risk, designed to lower their total cost of risk. Identify Business Exposures Quantify Likely Impacts Reduce Risk Effects Respond During & After Extreme Events Risk Insights CUSTOM Analytics Risk Mitigation EVENT RESPONSE data Analysis & exposure Summary Natural Catastrophe Supply Chain Analytics Industry Tailored Solutions: Wearable Technology & Telematics Emergency Response Planning Benchmarking Against Peers Safety Security Cost Benefit Analysis Property Risk Engineering Crisis Management Identification of Major Loss Drivers Cyber Fraud Business Continuity Planning Liability Risk Consulting Drone Inspection Services Diagnostics Consultancy Post Event Support 3
Property Risk Solutions With complex production facilities frequently spanning multiple locations, manufacturers often have significant property footprints representing substantial risk exposures. Client Risk Solutions provides a number of property risk engineering services designed to identify, assess and reduce these exposures. Key Risk Solutions for Manufacturing Risk Assessment Identify, assess and reduce property exposures before they interrupt business activities and ensure robust business plans are in place should such an event occur. Appraisal / Valuation Assist in evaluating adequacy of physical asset valuations to improve insurance, collateral and tax programs. Construction Risk Identify risks associated with design deficiencies, fire protection, water damage and commissioning. Develop a program to mitigate and minimize exposures. Drone Assessments Services related to infrared inspections (heat loss, moisture penetration, electrical breakdown), topography (elevation mapping for flood) and potentially sinkhole detection. Natural Catastrophe Advanced modeling assesses property portfolio losses for a range of perils including earthquake, windstorm and flood. Success Story: Business Impact Analysis (BIA) A large cement manufacturer within Latin America was concerned about their firm s ability to restore and recover operations at their largest plant following a significant natural disaster and/or process fire event involving their large kiln operations. The CRS Business Impact team was engaged to conduct a robust business impact analysis of the plant operations including revenue stream analysis, production, business income, and related operations and the identification and consideration of loss mitigating and alternate recovery options, alternative suppliers and supply chain considerations. The BIA enabled identification of critical loss dependencies in the operations leading to the development of procedures, recommendations and alternatives that are being developed into the firm s new business continuity plan (BCP). When implemented, the BCP with all recovery and restoration recommendations incorporated, will reduce the identified potential net income loss by over $107M USD with an increased restoration production of over 1.1 M metric tons that would otherwise be lost. 4
People Risk Solutions While manufacturers utilize vastly different operational practices, there are common safety hazards facing their workforces. Client Risk Solutions risk consultants are available to assist in the development and implementation of a range of safety programs. Key Risk Solutions for Manufacturing Worker Safety Risk management services, best practice assessments, training program development, ergonomic evaluations, regulatory compliance assistance and industrial hygiene services. Client Centric Analytics Analytics, using AIG loss data, provide actionable insights to inform clients of opportunities to reduce cost of risk. Environmental Environmental health and safety program consultation, training and regulatory compliance interpretation as well as access to PIER (Pollution Incident & Environmental Response) - a global response network. Physical Security Assessment services to improve resiliency, life safety and physical asset protection. Fleet Safety Loss trend analysis and benchmarking; training for drivers, dispatchers and management; crash prevention. Travel Security Country guides on threat and risks, monitoring of individuals while traveling and emergency extraction services. Success Story: Worker Safety A global distributor of electronic parts was challenged in their attempt to reduce manual material handling injuries in their distribution centers. There was inconsistent safety practices and training at their warehouses across the continents. CRS Liability Risk Consulting created a standardized safety program and conducted safety training at several, key facilities. Management was also trained to consistently manage risk and training. Within nine months the severity and frequency of workrelated material handling injuries was reduced more than 20%. 5
Performance Risk Solutions Manufacturers face a broad range of risks that may impact their business performance. From emerging cyber risks to traditional transportation exposures, Client Risk Solutions can draw on a range of resources to minimize disruption to businesses. Key Risk Solutions for Manufacturing Product Liability Exposure analysis throughout product creation/ servicing process. Review of warning and message exposures to determine improvement. Evaluation of complaint and claims process. General Liability Facility and security reviews, complaint management evaluation, incident investigation procedure reviews and workplace violence controls. Cyber Security Training and awareness, harmful IP address/site blocking, vulnerability scanning, best practice comparison and infection detection. Enterprise Risk Management Review of risk management framework and risk modeling. Success Story: Product Liability A client involved in chemical manufacture and distribution wanted to alter its distribution methods to take more control of the distribution process and storage options. The client asked for a product and general liability analysis to identify any new exposures. CRS identified how moving further through the stream of commerce could make the client more responsible for product quality for a stage storage and shipping during which many products are susceptible to quality degradation. We worked with the client to make sure they had better contracting provisions with third party providers where possible, and strong quality controls when they retained responsibility for the distribution and storage. Business Interruption and Continuity Review and quantify distribution exposure to facilities and supply chains. Develop and test business continuity plans through scenario analysis. Supply Chain Assessment/Security Review of critical dependencies and business interruption impact, audit of security procedures and consultation on policy. Quantitative models used to determine risk of supply chain disruption. Transportation Marine Carrier or vessel vetting, packaging and handling assessments and cradle to grave risk monitoring services for high value goods or cargoes sensitive to mechanical shocks or climatic stresses. 6
For more information email: CRS@aig.com American International Group, Inc. (AIG) is a leading global insurance organization. Founded in 1919, today AIG member companies provide a wide range of property casualty insurance, life insurance, retirement products, and other financial services to customers in more than 80 countries and jurisdictions. These diverse offerings include products and services that help businesses and individuals protect their assets, manage risks and provide for retirement security. AIG common stock is listed on the New York Stock Exchange and the Tokyo Stock Exchange. Additional information about AIG can be found at www.aig.com and www.aig.com/strategyupdate YouTube: www.youtube.com/aig Twitter: @AIGinsurance LinkedIn: www.linkedin.com/company/aig. These references with additional information about AIG have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release. AIG is the marketing name for the worldwide property-casualty, life and retirement, and general insurance operations of American International Group, Inc. For additional information, please visit our website at www.aig.com. All products and services are written or provided by subsidiaries or affiliates of American International Group, Inc. Products or services may not be available in all countries, and coverage is subject to actual policy language. Non-insurance products and services may be provided by independent third parties. Certain property-casualty coverages may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state guaranty funds, and insureds are therefore not protected by such funds. 2017 American International Group, Inc. All rights reserved USAL00002235 AUG17