In Brazil, AIG was the pioneer in launching Environmental Insurance in 2004. In order to educate others on the latest in environmental risk management and legal liability in the case of pollution conditions, the Escola Nacional de Seguros - FUNENSEG, Brazil’s national school for insurance, held a workshop titled “Environmental Insurance: History, Characteristics, Legal Aspects and Associated Tools” in Rio de Janeiro.

The Environmental Liability Manager for AIG Brazil, Nathália Gallinari, was invited to facilitate the course. More than 40 people participated, representing small and medium enterprise professionals, lawyers, reinsurance and insurance brokers, and students.

During the course, Nathália shared the concepts of environmental risk management and how to identify risks along with responsibilities and co-responsibilities associated with contamination. She also addressed issues regarding the polluters’ responsibilities, the differences between gradual vs. sudden and accidental pollution, how to identify the key environmental aspects and impacts on an operation, in addition to the types of environmental insurance products available in Brazil.

According to Nathália, since its inception more than 10 years ago, environmental insurance is already broadly considered an important risk management tool by many Brazilian companies. It is already being included in some specific Brazilian laws. In addition to being used to minimize risk and prevent losses, environmental insurance is also now being required for different types of contracts – such as leasing, M&A, and concessions, to name a few.