The Federation of Egyptian Insurance Companies (FEIC) has highlighted the importance of risk engineering as a strategic tool in risk management and insurance.
In its latest weekly newsletter, the Federation stated that adopting an advanced approach to risk engineering not only contributes to reducing losses and enhancing sustainability but also improves the efficiency of the insurance market and increases trust between customers and insurance companies.
Risk engineering is the application of engineering skills and methodologies to the management of risk. It involves hazard identification, risk analysis, risk evaluation and risk treatment. Domains covered include health and safety in the oil and gas sector (onshore and offshore), nuclear energy, chemicals manufacturing, aviation, railways, civil engineering and critical infrastructure management, according to the risk-engineering.org website.
The role of a risk engineer covers the period before, during, and after an incident, assessing facilities, equipment, and operations within a facility to provide accurate recommendations that help companies develop effective strategies to manage potential risks..
Consequently, risk engineering helps insurance companies and policyholders enhance safety, reduce claims volume, and improve flexibility across the entire insurance process by integrating technical expertise, data analysis, and strategic planning.
The FEIC stressed the need to enhance cooperation between insurance companies and various sectors, particularly industrial and commercial sectors, to implement risk engineering principles at all stages of operations, from risk analysis and assessment to the design of appropriate insurance solutions.
It also called for the adoption of international standards and innovation in risk management, and for cooperation between companies and academics to develop sustainable policies that protect both insurance companies and the insured.
The Federation said that it is committed to supporting Egyptian insurance companies by providing recommendations based on global best practices in risk engineering, while promoting a culture of risk prevention and mitigation as an essential part of the comprehensive insurance strategy.