Power Blackout Risks
Risk Management Options
Emerging Risk Initiative – Position Paper
November 2011
2
Content
1.
Summary
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2. Power blackouts challenge society and economy
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3. Blackout risks on the increase
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3.1. How power market trends influence blackout risks
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3.1.1.
Liberalisation and privatisation
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3.1.2.
Renewable energies
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3.1.3.
Huge investments in power supply infrastructure required
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3.2. Historical power blackout events and future scenarios
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3.2.1.
Historical blackouts
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3.2.2. What are the causes of blackouts?
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3.2.3. Average blackout duration per country
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4. Potential
blackout scenario
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4.1. consequences
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4.2. cost analysis of Historic blackout scenarios
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5. Considerations for risk management
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5.1. trends affecting tHe business interruption (bi) risk landscape
and power dependency
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5.1.1. General impact of blackout in light of changed production processes
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5.1.2. Specific impact based on car manufacturers
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5.2. business continuity planning to mitigate power blackout risks
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5.3. risk transfer solutions
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5.3.1.
Principles of insurability
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5.3.2. Current
risk transfer solutions
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5.3.3. Future risk transfer products
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5.3.4. Residual risk acceptance
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6. Conclusion
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7. Annex
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authors:
Michael Bruch, Volker Münch, Markus Aichinger (Allianz)
Michael Kuhn, Martin Weymann (Swiss Re)
Gerhard Schmid (Munich Re)
