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Below you will find an archive of SmartRisk Report Newsletter. Browse through the issues below, or follow the link located at the bottom of this page to subscribe to our newsletter.
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 | Insurance Update & A/E Insurance (Jan 2012)
The U.S. property and casualty (P&C) insurance industry combined loss ratio climbed to 109.9 in the first nine months of 2011 compared to 101.2 in 2010 (>100 indicates losses), the worst year since 2001.
The A/E industry has had significant reduction in revenue and size. However, there are now between 50 – 60 insurance carriers for this specialized segment. Firms are advised to look well beyond just premium costs when selecting an insurance provider.
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 | Fed's Report: Growth, Construction Housing Flat (Jan 2012)
The Federal Reserve latest report on the nations regional economics showed positive signs of activity with the exception of the housing market. The report is a snapshot of business conditions in the 12 regional bank Districts for the Federal Reserve. Information is obtained by contacting industry leaders, economists, financial experts and businesses from retailers, hotels, manufacturers, travel, restaurants and building professionals. |
 | Risk Management for Asia Pacific Sustainable Projects (Jan 2012)
Sustainable or “Green” initiatives are gaining momentum around the world. SmartRisk was an invited speaker on the topic of sustainability and risk at the recent 2011 Asia Pacific Risk Management Conference that was held in Bali, Indonesia.
Significant interest is on sustainable strategies for the Asia and Pacific Region based on the increasingly resource-limitations and intensive growth due to rapid urbanization, increasing consumption and high economic growth. This growth has come |
 | Has the Economy Affected Your Firms Risk-Rating? (Aug 2011)
Economic conditions hit the world’s financial superpower with Standards & Poor’s historic decision to downgrade the U.S. credit rating. How has the economic climate impacted A/E firms risk-rating? Are firms making the right decisions today to manage risk effectively? Many firms have been forced to make changes based on reduced revenues and fewer projects opportunities. This article discusses economic risks and the use of risk assessments in identifying these exposures and methods... |
 | The Art of Designing in the Rain (Jul 2011)
It is more difficult to do anything in the rain. Racecar drivers do not like racing in the rain because the car is unpredictable on a wet track and amplifies when a driver makes a mistake causing spinouts and crashes. The driver in this article learned early from a veteran how to drive in these conditions and outperform other drivers. There are only two options: 1) Wait until something happens or 2) Create and control the outcome. This article talks about how A/E’s can take control and ... |
 | A/E Mergers and Acquisitions Increase 29% (Apr 2011)
Mergers and acquisitions (M&A) deals have
increased 29% compared to last years activity. There are many drivers for M&A deals and slow economic conditions, consolidation is a usual trend. Great care is needed when merging, selling or acquiring another firm. How a firm appears on paper and how they are in practice can vary greatly. If proper and complete due diligence is not performed, a firm can significantly decrease performance and significantly increase risk. |
 | When Selecting an Insurance Carrier (Apr 2011)
Based on an industry survey there are more carriers than ever before in the specialized A/E insurance segment. Insurance professionals stated there are now between 45 - 60 providers compared 17 five years ago. This is at a time when the A/E market is shrinking based on economic conditions with reducing annual revenues and an increase in merger and acquisition activity. Firms need to take great care and recommended to use a "quality" selection process when making this important business decision. |
 | Today, PM's Need More Than Technical Skills (Apr 2011)
Architect and engineers (A/E) firms are being asked to do more with less today. Sitting at the center of that picture is the Project Manager (PM). Being an effective PM today requires much more than just having technical skills and abilities. Especially in slow economic conditions, PM’s must effectively manage the financial viability of projects, they must also ensure the quality of service as well as being an effective communicator. Ten important PM responsibilities to be effective. |
 | LEED Lawsuit Amended (Feb 2011)
The $100 million dollar lawsuit filed in October 2010 against the U.S. Green Building Council (USGBC) and it’s LEED rating system has been amended. Filed February 7th, 2011, the amended lawsuit focuses on USGBC’s alleged false advertising that LEED guarantees energy savings. The lawsuit is also no longer a class-action lawsuit and the plaintiffs are four design and construction professionals on behalf of other industry professionals. |
 | 10 Key Topics for Green Code Compliance (Jan 2011)
There are numerous state, city, county programs and requirements related to sustainable buildings. Some have mandatory requirements with voluntary provisions. This articles highlights 10 key topics regarding green buildings and code compliance. Based on the state-wide program implemented in California, CalGreen will is used as a primary example of compliance issues, concerns and recommendations. |
 | Strictest Green Building Code in the U.S. (Jan 2011)
Effective January 1, 2011, possibly the most stringent environmental building code in the United States is now being enforced applying to new construction. The new code for the state of California is called CalGreen requiring reduced indoor water use, diverting 50 percent of construction waste from landfills to recycling, use of low-pollutant materials, and installation of separate water meters for different uses in nonresidential buildings. This article summaries the requirements of the new Cal |
 | Top 10 Risk Mitigating Practices for 2011 (Jan 2011)
As we move into 2011 there are practices firms should focus on for improved performance and reduced risk. During slow economic conditions, parties are more willing to litigate, file claims sooner and for smaller amounts.There are firms in a better prepared position today along with primed pumps when economic conditions improve. What are these firms doing differently? They have implemented effective strategies for mitigating risk as well as improving performance. |
 | LEED Lawsuits (Nov 2010)
Alleged false advertising, monopoly tactics and LEED buildings actually performing 29% less energy efficient than conventionally-built structures, a $100 million lawsuit was filed against the U.S. Green Building Council (USGBC) and it’s Leadership in Environmental and Engineering Design (LEED) rating system. This newsletter addresses this lawsuit along with other industry green lawsuits, sustainable growth projections and risk management considerations.
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 | Reduce Risk, Improve Performance & Insurance Costs (Oct 2010)
In this challenging economic climate, A/E firms have been forced to become more efficient and resourceful while reducing overhead and operating costs. Firms must be aware that efforts may inadvertently have the opposite effect. Changes are negatively affecting performance resulting in increased risk and liability exposure.
Firms should seek assistance when making these decisions. SR Risk Assessments have proven to be very for; mitigating risk, improving performance and reducing insurance costs. |
 | Indemnity Victory for Design Professionals (Oct 2010)
On September 29, 2010, California Governor Arnold Schwarzenegger signed legislation, SB 972 changing the indemnity ruling for design professionals that takes effect January 1, 2011. The new law states that contracts between design professionals and local public agencies that defense costs and indemnity must be based on negligence, recklessness or willful misconduct of the design professionals. Based on recent court decisions, this is a great victory for all DP's. |
 | Economics Increasing A/E's Risk (Jul 2010)
The economic climate has dramatically changed the landscape for many A/E firms. 92% of all design firms have been negatively impacted by the economic downturn. Firms have been forced to reduce overhead and implement cost-cutting measures including reduction in staff, reduced workweeks, changes in business practices, operations, explore new markets and service segments in an effort to stay afloat and increase revenue. All realities in today’s economic, however in many cases is altering and |
 | Sustainable Design & Risk (Mar 2010)
The interest along with the requirements for sustainable design and construction concepts is growing daily. With this opportunity comes increased risk and liability for design professionals. Sustainable design incorporates concepts using innovative products, energy efficient materials and construction methods. For buildings, certification programs promote improved health and well-being of occupants and students. Since there is no proven track record for many of these sustainable concepts, it pre |
 | Characteristics of Higher Performing A/E Firms (Mar 2010)
The last few years have been very challenging for many A/E firms with little relief in sight. Even more troubling is firms not implementing change and adapting to market conditions could find themselves in the middle of a slow, painful death. There are firms succeeding today in addition to putting themselves into a better-prepared position when economic conditions improve. What are these firms doing differently? This newsltter addresses those issues. |
 | Importance of Quality Selection When Purchasing A/E Insurance (Jan 2010)
There are more A/E PL insurance providers than ever before, with wide variations in capabilities and services....all competing for A/E premium dollars. Firms should evaluate the "quality" aspects of insurance providers the same way they ask clients to select project consultants and contractors. This decision should be based on quality, not a low-bid process. This newsletter identifies the quality aspects firms should consider when purchasing PL insurance. |
 | Is Stimulus Funding Helping A/E Firms? (Nov 2009)
Unemployment rate for A/E's has doubled in the last year with 113,00 looking for work. Shovel ready stimlus projects have provided little help for many firms. However, there are opportunities but you must be knowledgable of the process and have an effective strategy for obtaining federal contracts. Information is provided on doing your homework, where to look for federal work along with steps in helping you through the process. |
 | Slow Economic Conditions and Risk (Sep 2009)
Economic conditions are causing firms to change they way they do business. Trying to survive, firms are going into new services areas, project types, clients and regions. Minimizing operating costs, firms have had layoffs, trimmed operational budgets impacting insurance purchasing decisions. All items increasing risk. As firms make changes, they need to realize the risks and incorporate effective risk management strategies moving forward. |
 | Low Construction Bids Increasing Risk for A/E Firms (Sep 2009)
Constructions Bids & Risk. Constuctions bids on coming in well below engineering and agency estimates, increasing risk for design professionals. It is important to Identify these risks and implement effective risk management strategies mitigating risk, improving performance, profitability and protecting your firms financial viability and future. |
 | A/E Firms Accepting More Risk Driven By Economic Conditions (Aug 2009)
Based on a survey of 17 A/E PL Carriers, A/E firms are accepting more risk, offering new services outside their noral area of expertise, working with clients and projects they would not accept under normal circumstances, not purchasing insurance, lowering limits, increasing deductibles, etc. In this difficult economy, it is a natural reaction to identify methods to cut operating costs. However, firms should not be short-sighted when making these decisions. During a slow economy, claims and litig |
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