Taking business interruption protection to the next level

Traditional business interruption (BI) cover is usually triggered by property damage, for example a fire or flood. As a result, those events which don't actually damage property but can still disrupt operations can fly under the radar. What if, for example, a supplier were unable to complete a vital delivery or a major cyberattack were to cause computer systems to shut down.

There are a number of rare but hard-hitting events lurking beyond the scope of traditional BI insurance, which can cause terminal damage to a business. Moreover, it can be hard to provide cover against such occurrences as they may not have happened before, thus placing a question mark over such factors as loss severity and correlation.

Swiss Re Corporate Solutions has the expertise to define, quantify and ultimately cover such risks. That's why we were able to respond when Swiss Federal Railways (SBB) approached us for insurance against a number of these black swan events. We were able to work with them to define the major uninsured risks, which included natural catastrophes and the breakdown of computer systems. Having identified their requirements, we then took over the share of the risks they wanted to transfer in the form of a multi-year excess of loss policy.

Christian Fankhauser, SBB's Head of Insurance Management, summed up our cooperation as follows: "We can say that jointly we have developed new ground in the corporate insurance space. We started with a vision and an idea. With Swiss Re Corporate Solutions, we could actually bring this to fruition."

How secure are your business operations? Do you see any "black swans" looming on your horizon? If so, why not talk to us and we'll work with you to bring them under control.