JAKARTA, Indonesia, Nov. 17, 2011 /PRNewswire-Asia/ —
Mining companies in Indonesia are facing an increasingly complex operating environment, as risks including natural catastrophe, pollution and underinsurance create obstacles to growth, according to Marsh, the world’s leading insurance broker and risk advisor.
Natural catastrophes and an increased attention on enviromental regulation have forced companies to review their insurance and risk management programs to ensure they have the appropriate levels of protection in place to withstand this changing environment.
Global commodity price volatility and the rising cost of raw materials such as steel are also fueling a rise in rebuilding costs for mining facilities. By failing to update their insured values routinely, mining companies are potentially exposed to the risk of underinsurance. Marsh recommends that mining companies regularly monitor the insured values of their business-critical assets to ensure they are adequately covered in the event of a loss.
Ian Brown, Managing Director and Mining Practice Leader for Marsh in Asia said: “Although Indonesia’s resource-rich mining sector is benefiting from continued foreign and local investment, the operating risks it faces are becoming more complex. Earthquakes, floods and tightening regulation around environmental protection all pose significant challenges to firms being able to maximise their returns and operational efficiency.”
To provide a greater degree of awareness of these key business-critical issues, Marsh today hosted a conference attended by many of Indonesia’s leading mining companies. Speakers at the conference urged firms to take a more comprehensive approach to risk management, using best practices in insurance and risk management to ensure sustainability and long term growth.
Speakers at the conference highlighted the risks involved at every stage from exploration to site closure, environmental and pollution risk management and, enterprise risk management. One key session focused on asset valuation and its role in preventing underinsurance.
The half-day conference was hosted at the Shangri-La Jakarta, and attracted over 100 delegates with a balanced mix of local and international mining companies and advisors.
Marsh (http://www.marsh.com/), the world’s leading insurance broker and risk advisor, teams with its clients to define, design, and deliver innovative industry-specific solutions that help them protect their future and thrive. It has over 24,000 colleagues who collaborate to provide advice and transactional capabilities to clients in over 100 countries. Marsh is a member of Marsh & McLennan Companies (http://www.mmc.com/), a global professional services firm with 52,000 employees worldwide and annual revenue exceeding $10 billion, which is also the parent company of Guy Carpenter (http://www.guycarp.com/), the risk and reinsurance specialist; Mercer (http://www.mercer.com/), the provider of HR and related financial advice and services; and Oliver Wyman (http://www.oliverwyman.com/ow/index.html), the management consultancy. Its stock (ticker symbol: MMC) is listed on the New York, Chicago and London stock exchanges. Follow Marsh on Twitter @Marsh_Inc (http://twitter.com/@Marsh_Inc).