Detailed surveys necessary for the underwriting of highrisk situations, e.g. pollution or environmental impairment liability cover in high-risk industries. The cost is borne by the insured directly or indirectly through higher premiums.

Risk-based capital regime being introduced by the FSA for life and nonlife insurers. Calculations are based on industry-wide assumptions and individual capital guidance (ICG) given to firms based on the FSA’s view of how much capital would be adequate for individual firms to hold taking into account the firm’s risk profile and its own assessment of their own capital needs. ICG will normally be at or above ECR and although for guidance only, the firm’s not meeting the ICG figure will be expected to set out a plan to restore adequate capital. The mechanism, Individual Capital Adequacy Standards (ICAS), means that firms will hold capital more appropriate for their business and control risks and have the incentive to improve their risk management.

The extra charges for the handling of insured cargo because of its damaged condition.
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Increased in the charges for handling insured cargo resulting from the fact that the cargo has been damaged.

‘The process by which organisations assess, control, exploit, finance and monitor risks from all sources for the purpose of increasing the organisations short and long term value to shareholder’ (Casualty Association). It combines a whole range of financial risks with insurance risks and seeks to optimise the manner of its risk taking.

General commercial and business risk that is usually accepted as a part of the firm’s normal operations in the market place. Profit is the reward for entrepreneurial risks.

Theft insurances cover loss by ‘entry’ when it is by forcible and violent means. Actual entry means the insertion of any part of the body, even if it is only a finger, into the premises, but the qualifying words preclude claims when people enter without having to break down the defences of the premises.

Main provisions: creation of the Environment Agency (England and Wales) and the Scottish Environment Protection Agency; the contaminated land regime; protection of the aquatic environment; air quality management; and producer responsibility with the aim of recycling packaging waste significantly.

A formal assessment of the total environmental effect of a project, process, product or development. It is a legal requirement for some specific projects.

Claims-made policy covering legal liability to third parties for bodily injury or property damage arising out of gradual pollution. It also covers mandatory clean-up costs for both sudden and gradual pollution of the insured’s own and third party sites. Cover is sitespecific based on risk assessments. Multiple premises cover extends to product liability and work away risks. Some insurers reimburse voluntary costs incurred by the insured in taking emergency preventive action. Fixed premium policies can be written for up to five years. See CONTAMINATED LAND.