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James Jensen

5 minutes ago

James Jensen wrote a new wall post

Is anyone familiar with the differences in content between these two courses? The AINS 24 waves AINS 21 for AIC designations and also fulfills requirements for an ACE certification, I am wondering... see more
Un I Chan

32 minutes ago

Un I Chan wrote a new wall post

What is the current textbook for CPCU 520? Who is the author? 2nd edition? Just want to double check if I get the right material for this exam (exam window July 15 - September 15, 2014). Thank... see more
Adrienne Shivers

49 minutes ago

Adrienne Shivers wrote a new wall post

Passed AFSB 151 yesterday. Test went well and it was what I prepared for and expected so that's always great!!!
Dana R. Thomas

8 hours ago

Dana R. Thomas wrote a new wall post

I have completed five exams so far, and 553 will be my 6th. Advice for the exam? Chapters to focus on? Other tips? Greatly appreciated!!! Thanks!
Gregory J Massey

23 hours ago

Gregory J Massey wrote a new spotlight post

By Gregory J. Massey, MBA, MS, CIC, CRM, CPCU, ARM, CLCS, PMP At the 2013 CPCU Society Annual Meeting in New Orleans, the seminar “Powering a Cleaner World in the 21st Century” was presented to a full audience. I moderated the session, which included speakers Dallas Kinley, operations vice president at Mutual Boiler Re, and Stephen C. Clarke, CPCU, assistant vice president—commercial property... see more

By Gregory J. Massey, MBA, MS, CIC, CRM, CPCU, ARM, CLCS, PMP

At the 2013 CPCU Society Annual Meeting in New Orleans, the seminar “Powering a Cleaner World in the 21st Century” was presented to a full audience. I moderated the session, which included speakers Dallas Kinley, operations vice president at Mutual Boiler Re, and Stephen C. Clarke, CPCU, assistant vice president—commercial property at ISO, Inc.

The session focused on alternative energy. Alternative to what? Alternative to petroleum-based energy, such as ethanol, bio diesel, methane, hydrogen, nuclear, and compressed natural gas, and alternative to foreign oil, such as coal, tar sands, hydraulic fracturing, off-shore drilling, shale oil, and natural gas. The focus was on renewable energy, such as solar, wind, tidal, hydro, and geothermal.

While the speakers pointed out that there are a lot of advantages to moving to alternative energy, there is also a whole new set of exposures to deal with. When we think of exposures with a traditional source of energy, say, petroleum, the BP oil spill, for example, comes to mind. With alternative energy, what types of exposures are we faced with? Below are benefits and exposures with varying types of alternative energy.

Solar Power
Benefits
•Indefinitely renewable
•Clean
•Cost effective (Tax incentives, Net metering)
•“Bragging” rights

Hazards
•Power quality: Fluctuations can cause damage to equipment
•Safety concerns for repair crews
•Utility may require insurance
•Wind exposure and roof penetrations
•Fire safety
•Wiring/electrical safety: concern for first responders
•Increased cost in roof repair

Wind Power
Benefits
•Cost competitive
•Creates jobs
•Clean
•Indefinitely renewable
•Income potential

Hazards
•Attractive nuisance
•Zoning issues and “not in my backyard” issues
•Bird strikes (damage to turbines)
•Fire and mechanical breakdown
•Catastrophic brake failure (self destruction)
•Transportation (to get to place of installation)
•Site repair (difficult topography)
•Worker safety
•Noise pollution (The sound from standing next to a wind turbine is equivalent to the sound of a lawn mower; from 400 meters away, the sound is equivalent to the sound of a refrigerator.)

Hydro Electric Power
Benefits
•Cheap power
•Clean
•Creates jobs

Hazards
•Disturbs habitat
•Agricultural effects
•Flooding/dam bursts

As an underwriter, while one may see positive attributes about insureds wanting to go green, such exposures need to be evaluated appropriately by measuring the overall cost of risk. And, with lack of a sufficient amount of claims data for some of these emerging exposures, it becomes even more difficult to quantify risk and predict loss cost. Underwriters’ reliance upon qualified risk engineers and their insight becomes imperative in the overall risk assessment process.

Gregory J. Massey, MBA, MS, CIC, CRM, CPCU, ARM, CLCS, PMP, is senior vice president and head of technical underwriting for Zurich North America. He is based in New York, N.Y. Massey is involved in the industry: CISR Board of Governors with The National Alliance, National Committee member for the CPCU Society, editor of the Underwriting Interest Group newsletter for the CPCU Society, past panel member for ISO GL and Emerging Issues, past president of three CPCU chapters, CPCU textbook reviewer, and academic advisory council.

Thank you to the CPCU Society Underwriting Interest Group for sharing this article from their recent newsletter. You can find out more information about the Underwriting Interest Group here: http://www.cpcusociety.org/interest-groups/underwriting

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Delores Nelson

yesterday

Delores Nelson wrote a new wall post

Can someone tell me the difference between taking the actually AINS 21 test and taking Segment A, B, C?
Kim Cavallero

2 days ago

Kim Cavallero wrote a new wall post

What exam are you studying for in this testing window (April 15-June 15)?
Jacob Hodgson

2 days ago

Jacob Hodgson wrote a new wall post

Has anyone taken this recently? What is your experience with the test? Thanks!
Michael S. Coleman

2 days ago

Michael S. Coleman wrote a new wall post

Tested and passed today w/o any issues. Exam was much easier than I had anticipated.
Jason Howser

2 days ago

Jason Howser wrote a new wall post

Getting ready to take AAI 83 (full course) in a couple weeks. Any tips or advice would be greatly appreciated. Thanks!