ACE Opens Environmental Risk Business in Europe

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Global insurance specialist ACE is today launching ACE Environmental Risk to help European organizations better manage their environmental liabilities and risks in the face of increasing EU regulation.

LISBON, Portugal — Global insurance specialist ACE is today launching ACE Environmental Risk (AER) to help European organizations better manage their environmental liabilities and risks in the face of increasing EU regulation.


The European Union's Environmental Liability Directive which came into force in April 2004 will create increased liabilities for organisations of all sizes. Member states have until April 30, 2007 to incorporate the Directive's provisions into national law. It will also require business to meet increased levels of disclosure around their environmental exposures. Moreover, despite the drive for European harmonisation, EU regulations may still vary from country to country so organisations operating across more than one country must ensure they are aware of any differences in legal requirements and liabilities.


ACE says that there is a significant lack of awareness and understanding of the implications of the new Environmental Liability Directive and that, as a result, many companies are inadequately covered. The situation is exacerbated by the fact that the majority of environmental liabilities are attached to small and medium sized businesses, which are those least able to absorb the often catastrophic impact of an environmental problem.


Speaking at today's Federation of European Risk Managers (FERMA) Congress in Lisbon, Portugal, Karl Russek, senior vice president of AER said: "The EU's Environmental Liability Directive is a wake-up call for European companies. We plan to work in partnership to help them understand their liabilities and to limit their exposures."


Pollution liability is a key aspect of environmental risk management, according to ACE. Exposures either due to on-going operations, or historic activities on property in previous years can have a significant impact. There is virtually no way to be certain of what took place on premises years ago, so any organization which owns or rents land is at risk. The increased pressure to act in an ethical and responsible manner and according to corporate governance guidelines is also an important consideration for shareholders and other stakeholders.


Source: Business Wire, ACE