As a result, many businesses are approaching companies such as RMS, which traditionally has provided computer catastrophe modeling to insurers and reinsurers, to analyze the earthquake and windstorm exposures of their worldwide property portfolios. As U.S. business grows and changes, so do its loss control needs, said HSB's Mr. Brock. For example, as the automotive manufacturing industry uses more lightweight magnesium, HSB is doing burn tests at Underwriters Laboratories Inc. in Northbrook, Ill., to make sure the fire protection at plants is adequate, he said. In addition to developing Project Alpha and the magnesium burn tests, HSB also is working with several universities on new fire and smoke modeling tools, Mr. Brock said. The insurer also is helping many companies develop corporatewide fire protection and loss control standards that help shield properties in emerging markets, where building codes often are less rigid, Mr. Brock explained.
More companies are going global, so they want services all over the world.
The insurer uses the test results to advise clients entering new product lines, he said. For a client with 200 locations, for example, risk information could be collected and stored, along with recommendations on loss expectancy and associated loss control costs, Mr. Swaysland explained. The information is delivered through FM Connect, Factory Mutual's Internet-based information service. They can ask questions about the data. The risk cube also generates charts that risk managers can use to present loss control information to their corporate boards, he added.