This content was subject to assurance by SGS Italia S.p.A. (14 March 2014).

Environmental Insurable Risks

New approach to environmental insurable risks


Fiat Risk Management has developed an innovative risk management methodology in collaboration with the EHS departments of Group companies, a major international consultancy and certification firm, and an insurance partner. This methodology enabled the Group to:

  • obtain an objective and quantified knowledge of the insurable environmental exposures
  • develop improvements in risk profiles according to the Sectors’ EHS strategy
  • understand and clearly communicate priorities and benefits
  • effectively inform the insurance market about the loss prevention activities to prevent and mitigate potential environmental losses
  • obtain environmental insurance coverage appropriate to the exposures, the loss prevention activities carried out and in line with Group strategies. 

When used

Using this methodology, 69% of Fiat Group total insured value was assessed and analyzed in 2012-2013.

To validate the information obtained through self-assessment in 2013, a visit campaign was launched to a selected number of sites considered representative for the Group in term of size, occupancy and geographical distribution. The visits were organized by the central EHS Departments of each Group company and were conducted by specialized environmental risk engineers of a leading insurance company in the environmental field.


This extraordinary effort resulted in the development of the first environmental maps for the Group and its companies. These maps represent a quantified overall level of risk obtained via a certified self-assessment tool using scientific methodology. 

Lesson learned

These results were presented to the insurance market confirming that Fiat Group environmental risks are known, well-quantified and properly managed. Results also led to comprehensive global insurance coverage.


Earthquake risk re-engineering project


The work group formed by AXA, Naples University, Magneti Marelli and Fiat Risk Management launched a three -year research project to develop a scientific quantitative earthquake risk evaluation process. The methodology enabled the Group to:

  • efficiently assess
  • properly quantify
  • proactively manage
  •  the seismic risks exposing industrial manufacturing sites.

When used

During the development of the research project, the approach was defined as multilevel and quantitative, i.e., a procedure capable of considering different knowledge levels as an input and providing a quantitative measurement of seismic risk:

  •  Level 1 - relative, mainly for prioritizing purposes
  •  Level 2a - absolute analysis based on existing fragility curves
  •  Level 2b - absolute analysis based on computed fragility curves


The principal output of this procedure was a ranking within the portfolio based on seismic risk; consequently, a prioritization of structures for decision making and potentially a more refined analysis of the top ranked facilities.

Lesson Learned

The events which occurred in 2012 in a key Italian industrial area confirmed the importance, for a global manufacturing organization, of having in place a modern earthquake risk management methodology


Climate change potential impact analysis


The three main goals of this project, launched to study the potential new risks posed by climate change, were:

  • Raise awareness across the whole organization of the potential new risks posed by climate change
  • Explain the nature of the risks associated with climate change
  • Verify that all risk management processes already in place, and the new measures under development or still to be developed, must consider climate change

When used

The hail project was developed primarily for the finished parking lots but it also has positive effects for Group plants and other sites. Its goals are:

  • Widen the period of hail net coverage
  • Support the parking lot emergency teams delivering weather bulletins and alerts in the event  of a storm forecast.
  • The rain project aimed to develop a methodology to analyze the potential rain water risk based on the gap analysis between the design data used at the time of the building construction, and the current design data function of occupancy and latitude (as per internationally recognized construction standards).


The hail risk project adopted a weather forecast/alert service which provides information about snowstorms , rainstorms and hailstorms, as well as long-range forecasts to optimize the installation and removal of hail protection nets.

The rain risk project allowed:

  • the identification of relevant data about the plant’s rain water collecting and removing network
  • the creation of an ad hoc form to collect and report key data
  • the development of a methodology to identify and extract the current design data for the specific occupancy and latitude
  • software development to carry out the gap analysis (design data at the time of the construction data compared with current design data)
  • processes to identify treatment priorities considering both the gap and the values at risk 

Lesson learned

The weather alert service has already yielded positive results as demonstrated by the roughly 1500 vehicles spared (not damaged) during the  April 6, 2012 hailstorm that impacted a parking lot in Turin.