THE STRENGTH OF ARCH®
Insurance coverage is underwritten by one or more member companies of Arch Insurance Group in North America, which consists of (1) Arch Insurance Company (a Missouri corporation, NAIC 11150) with admitted assets of $4.04 billion, total liabilities of $3.18 billion and surplus to policyholders of $860.78 million, (2) Arch
Specialty Insurance Company (a Missouri corporation, NAIC #21199) with admitted assets of $504.18 million, total liabilities of $206.03 million and surplus to policyholders of $298.15 million, ( 3) Arch Excess & Surplus Insurance Company (a Missouri corporation, NAIC 10946) admitted assets of $75.46 million, total liabilities of
$4.94 million and surplus to policyholders of $70.52 million and ( 4) Arch Indemnity Insurance Company (a Missouri corporation, NAIC# 30830) with admitted assets of $92.98 million, total liabilities of $60.57 million and surplus to policyholders of $32.40 million. All figures are as sho wn in each entity’s respective Quarterly Statement
for the quarter ended September 30, 2017. Executive offices are located at One Liberty Plaza, Ne w York, NY 10006. Not all insurance coverages or products are available in all jurisdictions. Coverage is subject to actual policy language. This information is intended for use by licensed insurance producers. © Arch Insurance Group 2018
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I was eight when I first learned of fire safety from Elmer the Safety Elephant. An animated mascot, Elmer’s
mission was to spread messages of
safety to all Canadian children around
fire, railway, school bus, traffic, home
and the internet.
Born in 1947, Elmer’s effectiveness
was astonishing. In his very first year
of teaching practical traffic safety rules,
traffic accidents involving children
dropped by 44 percent even as vehicle
numbers grew by 10 percent.
He taught common-sense safety
rules, one of which I still remember —
the fire triangle.
The fire triangle characterizes the
three components necessary for a fire
to occur. A fire needs fuel, an ignition
source and oxygen. Remove one, and a
fire cannot occur.
Fire extinguishers smother flames
by denying them oxygen. We restrict
the use and carrying of matches
and other ignition sources. Flame
retardants reduce the possibility of
objects becoming fuel sources. We
comply with legislation mandating
working fire alarm systems.
How many risk prevention and
mitigation techniques are now
designed around this simple triangle?
One example, we have the fraud risk
When fraud or theft occurs in
an organization, three conditions
usually surround the perpetrator.
They feel pressure or have an
incentive to commit the crime. They
find rationalization for their crime.
Thirdly, they have the opportunity and
resources to commit the crime.
An individual can be incentivized
to steal if they are burdened and
pressured by debts or financially
draining addictions. An individual
can rationalize their theft if they feel
wronged by the company. The stolen
money balances the scale for them.
Most importantly, an opportunity
must exist to commit the crime.
Working in a money transacting
department with loose or unmonitored
financial controls is an ideal
To effectively prevent fraud risk,
your risk response plans must aim to, at
minimum, quash one side. Removing
opportunities removes risk of fraud.
This triangle rule applies to other
crimes, too. My heart went out to the
families and friends of the victims from
Marjory Stoneman Douglas High
School in Parkland, Florida.
What a horror.
A mass shooter is incentivized by
the notoriety they may gain from the
act. They select individuals who they
feel wronged them and are deserving
of punishment. The victims’ deaths
balance the scale for the shooter.
But most glaringly, a mass shooter
needs the opportunity with resources
to commit the act. They need a gun.
Without one, a shooting cannot occur.
Americans constitute about 4. 4
percent of the global population but
own 42 percent of the world’s guns.
These numbers are screaming for
immediate attention. Much less is
JOANNA MAKOMASKI is a specialist in
innovative enterprise risk management
methods and implementation techniques.
She can be reached at email@example.com.
BY JOANNA MAKOMASKI