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cladding, and advocated non combustible materials’. However, ‘priorities were elsewhere’, and the market has been ‘disconnected from global attitudes’, partly due to competition. Information is ‘frequently unavailable’, while
materials can ‘easily deceive the untrained eye’. Grenfell however was a ‘watershed’ that ‘renewed focus’ on fire risk, and insurers now ‘work closely’ with customers on risk management and ‘appropriate improvement’ in fire safety. There is also now more information available,
but it provides challenges in terms of complexity, and has slowed processes. Modular construction for example improves cost and fire issues, but poses ‘myriad’ problems in pipework construction. This means that costs and energy efficiency ‘significantly drive’ combustible construction. The market ‘wasn’t aware of potential
exposures’ until Grenfell Tower, with building modifications the ‘main challenge’ – they might be designed as fire resistant, but are ‘massively affected’ by refurbishment. High rises must be regularly reviewed – ‘knowing what to look for’ is key, though identification is ‘clearly challenging’. Mitigation measures include maintenance;
access, and he highlighted approved documents as ‘practical guides’ to the building regulations. Older buildings ‘don’t have to be brought up to
new standards’, and obligations and compliance can ‘be reached in a number of ways’, resulting in decisions that are ‘not necessarily the best way’ to tackle problems. He also reflected on ‘major contentions’ within references to high rises in Approved Document B of the Building Regulations. These include ‘limited combustibility’ for cladding, with insulation held to a higher standard. Asking how things might change, he said that compliance is now contrasted with both the FSO and Building Regulations, with FRSs the enforcement bodies, and building control administered through local authorities or approved, privately employed inspectors. There is a ‘practical value’ in consulting FRSs ‘as soon as possible’ during construction, and while ‘not necessary’, their approval ‘can help’. Once checked by the FRS and building control, a building must receive a sign off certificate from the local authority, and building control has ‘no role’ after construction – the responsible person is ‘responsible now’. Dame Judith Hackitt’s review found the system ‘not fit for purpose’, and that it should be ‘non ambiguous’ and ‘simplified’. Mr Corbett noted that ‘realistically, nobody knows how much may change’ as a result, though the Grenfell inquiry may have an impact.
Underwriting considerations Zurich’s Evan Moore stated that there are pre and post Grenfell Tower attitudes in underwriting. Insurers have ‘always known the challenge of
48 OCTOBER 2018
www.frmjournal.com
housekeeping; fire and lightning protection; waste storage; FRAs; contractor controls; checking heating; reviewing common areas; enforcing no smoking; and storing combustible materials in sterile areas. Evacuation procedures too have a ‘massive impact’, and building owners are urged to make sure all contractors ‘do what they’re supposed to do’ on site. Focusing on reinsurance, Mr Moore outlined that business has declined; costs have increased; hard markets have been capitalised on in pockets; customers are less aware; exposures are not managed; and overall capacity has reduced, with high retentions attacked. This means more information should be shared, negotiations should be longer, and proactive FRAs undertaken. It’s often hard to make decisions until all
information is available, and underinsurance can arise due to modifications and questions around reinstatement time, leading to incorrect valuations. Capacity concerns can also lead to premium increases for owners, filtered down to tenants.
Managing risk
Russell Group’s Suki Basi and Julian Kirkman-Page explored the company’s aim to ‘understand connected risk’, and appreciate ‘how risks and opportunities are integral to business strategy’. By becoming involved, businesses could ‘empower, influence and manage’ their own strategy. After studies of the insurance market,
Mr Basi found that in multi class modelling offerings, leadership programmes revealed that
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