1. 1 British Association of Private Security Companies Bernard de Haldevang, Financial & Political Risk Underwriter Atrium Syndicate 609 at Lloyd’s First Annual Conference 30-31 October 2006, Royal United Service Institute Whitehall

2. 2 Overview >Security market >Insurance and the market >Risks and Exposures >Mitigation >Risk assessment

3. 3 Security market >Developments >Types >Regulation

4. 4 Insurance market >Brokers >Insurers (Lloyd's and non-Lloyd’s) –Capacity –Appetite –Experience –Regulatory regime >Risk categorisation –Broadly into risks that affect: –Assets –Contracts –Personnel

5. 5 Insurance >What should the insurance buyer specifically look for: –Experienced capacity (sometimes v price) –Clear understanding –Experienced intermediary >What might affect an insurer’s assessment: –Transparency & disclosure –Risk assessment, mitigation, prevention and training –Cover not a replacement for a dynamic process… –Experience –Duty of care… –Regulatory environment governing the insured

6. 6 Exposure Risk >Liability; incl: –Employer’s liability –Third party liability –Directors’ & Officers’ –Errors & Omissions >Personnel; incl: –Direct (life; dismemberment) –Indirect (earnings) >Assets (equipment & fixed) >Contractual (receivables) >Law suits and legal costs >Reputational risks >Consequential risks… >Management resources >Contract performance >Logistics and Morale >Financial losses >Ability to continue