Introduction of HDI Risk Survey (loss prevention survey)
A risk survey has two purposes. One is to collect risk information about the insured’s locations in order to underwrite the insurance program. The other is to assist the insured’s risk management schemes as part of HDI risk engineering services. The purposes are different but require the same site activities. Also, international risk surveys follow the same process and site activities as surveys here in Japan.
The following are the standard activities/processes of risk surveys that HDI Japan performs:
Site Selection:
The first step is to decide which client facilities need surveying. The decision considers factors such as HDI’s internal requirements, the client’s preference, high value and strategic locations, etc.
Survey Dates：
Once the target facilities have been selected, the days and time needed to conduct the survey will be examined. In order to estimate this period of time, HDI will forward a pre-survey questionnaire (Microsoft Word document) to the site to learn basic information such as type(s) of manufacturing process, site layout, fire protection systems, any hazardous processes/equipment, etc. Based on the information provided in the pre-survey questionnaire, HDI will develop a survey agenda.
The survey dates will be finalized with site management. In some cases, a pre-survey meeting (on-line or on-site) is held to clarify the details of the survey. This is particularly important for the initial survey. A pre-survey meeting is beneficial for introducing relevant personnel to each other.
Forwarding the survey agenda:
HDI will forward the survey agenda to the site which includes a list of the documents that we would like to review during the survey.
Survey (on-site survey):
The typical steps in a risk survey are as follows:
Introductory briefing, Q&A for the pre-survey questionnaire, plant tour and the wrap-up meeting. Typically, the risk surveys are for fire/natural hazard risk evaluations during which our focus will be on fire, explosion, natural hazards, and the protection measures/equipment for these risks as well as loss prevention programmes. Production areas, fire protection systems, fire pumps, plant utilities and hazmat storage buildings are typically evaluated during the site tour.
During the plant tour, we will not solely collect the risk information. We will also share our thoughts such as how we see and identify the risk factors, unprotected hazardous equipment and how they are typically protected as well as the lessons learnt from plants in similar industries, etc. It is beneficial that the risk manager or fire officers attend the risk survey.
At the end of the survey, we will share the hazards/risks identified during the survey process and cost-effective risk mitigation measures with the plant management. The outcome of these discussions are the basis for the recommendations in the risk report.
Survey (virtual survey):
If an on-site survey cannot be conducted, a virtual survey using a web conference tool such as MS Teams or the HDI Remote App is an option. However, please note that a virtual survey is mainly available for recurrent surveys at simple occupancies such as warehouses and non-manufacturing occupancies. It is typically not available for initial surveys at manufacturing facilities.
Risk report:
After the survey, we will process/analyse the information obtained and issue a formal risk report to the client typically within one month. The risk reports include the client report in English and Japanese if required. We are able to issue the risk reports in English for insurance markets. The risk reports typically include the risks identified during the survey and risk mitigation measures (i.e. recommendations).
Follow-up:
For the client’s risk management schemes, it is preferable that the identified risks are not left as they are, but either eliminated or reduced. From this viewpoint, HDI will follow-up the recommendation status in about 6 to 12 months after the risk survey. This recommendation follow-up completes one cycle of risk survey activity. We will then return to step 1 (site selection) for the next survey cycle.
The following shows the documents HDI uses for the risk survey:
Pre-survey questionnaire: This is a Word document to collect the basic information about the plant.
Example survey agenda: Depending on the size of the facilities, the survey takes between a half a day to two days.
Example HDI risk report (front page).
HDI risk surveys are very well-received by the insureds due to their comprehensive and easy-to-understand risk dialogue with site management/personnel. We believe that using HDI risk surveys for your client’s risk management schemes will provide additional benefits to your client relationship.