Countries around the world have enacted strong environmental laws—with more than 3,460 new ones in the works! Just as a sampling:
- Argentina – Renewed strengthening and focus on existing environmental legal framework requiring environmental insurance for businesses performing certain activities posing a threat to the environment
- Brazil – Stricter environmental regulations, enforcement and fines pulling from the “Polluter Pays” principle
- China – Bigger budget to regulate and enforce more stringent environmental protections initiatives and standards (CNY 100 billion)
- Europe – The Environmental Liability Directive rolling out to all 27 member nations with a primary focus on Biodiversity issues
- India – Proposing a more formalized National Environmental Protection Authority
- Russia – New law requires businesses dealing with hazardous materials to carry insurance
- UK – 2009 Environmental Damage (Prevention & Remediation) Regulations
- US – Biggest enforcement budget in decades
Preparing for Tighter Environmental Regulations
With so much in flux, it’s important for companies to identify their environmental exposures and create risk transfer solutions. It is important to work with both a broker and a carrier that understand the importance of properly structuring a multinational insurance program — which addresses the emerging regulatory challenges, contemplates potential tax implications/consequences, non-admitted vs. locally admitted insurance issues, claim management/payment issues, central administration and program coordination.
You can find more detail in our Spring 2012 Environmental Risk Newsletter, which features several risk and insurance related issues our clients are currently facing. In addition to this global environmental protection story, the issue covers two other topics our clients are currently facing:
- Fracking – addressing some of the environmental and insurance considerations associated with hydraulic fracturing (seems to be in the press on a regular basis these days).
- Electromagnetic fields – which discussing key exposures facing the real estate industry.
We release our newsletter on a regular basis as pertinent environmental risk and insurance-related matter continue to emerge, however, please feel free to reach out us with any ideas or topic suggestions