Recent announcements in the press have indicated that the terms of the insurance policies, governed by an Act over 100 years old, are about to change.
The impact this change will have on E&P companies is obvious when reviewing the new law. It states that what an insurance buyer knows about risks to the business will have to be disclosed to the insurance underwriter. This encompasses not only the traditional insurance risks, but also other types such as regulatory requirements, process controls, and incentive systems.
The revised Act puts a burden of new responsibilities on the buyers and company boards. If a claim is disputed and the company is found not to have fulfilled those responsibilities, a judge may declare their insurance invalid.
With RiskPoynt, an asset’s barrier-health is recorded daily. If a major incident was to occur, a company has the evidence of tracking operational risk, and operating safely through mitigation management.
As a risk management tool, RiskPoynt’s sole purpose is to visualize asset integrity risk across a complex portfolio of assets and enable all levels of a business to understand their risk exposure. The reason the system works so effectively is that it relies on human input to establish the risk, and then combines that with fast moving integrations to work management and machine telemetry that enables the software to validate in rapid real-time intervals. The result? – Very well established facts about risks to E&P assets.