Mitigating and Responding to Environmental Risks


  • As noted in the Risk Factors section of our Annual Report on Form 10-K for the year ended December 31, 2016 (publicly filed with the Securities and Exchange Commission), global climate change or an increase in frequency and severity of certain weather events in the regions where we operate could have a significant negative impact on our business
  • Property catastrophe risk, which includes weather-related catastrophes, is one of the largest risks in our risk profile


  • Standing enterprise-wide risk management group and catastrophe risk committee are comprised of leaders from all areas of the company; these groups examine risk, including those related to the environment and environmental catastrophes
  • Continuously monitor and model environmental catastrophe risk; for example, we conduct sensitivity testing using catastrophe models to assess the impact of climate change on our exposure
  • Establish catastrophe risk appetite limits and engage in ongoing monitoring of exposures within these limits
  • Actively track and manage risk aggregation by product line, geography, industry type, credit exposure and other bases
  • Employ formal underwriting controls to limit risk, including the use of policy limits, deductibles and exclusions
  • Utilize reinsurance arrangements to selectively cede excess risk to third parties
  • Mitigation strategies are in place to identify risks and threats, including environmental risks
  • Leverage research and analysis being conducted by several industry bodies, universities and weather experts to analyze historical data and to identify possible signs of climate change that impact both catastrophe and non-catastrophe weather-related losses
  • Chaucer, a market member of Lloyd's of London, partners with the University of Western Ontario Research Centre to assess hazards, exposures and risks worldwide across the multiple hazards of flood, windstorm and earthquake (For more information, click here)


  • All operating models are designed for staff augmentation to address demand surge during severe weather-related catastrophes or the onset of multiple, concurrent environmental events
  • Business continuity and disaster response plans are in place to ensure the continued operation of our business if an environmental or other event were to affect our operations

* Please see the Risk Factors section of our 10-K for additional information related to the risks to our business