Category: News

The agri-food industry plays a critical role in global economic and social development. However, food processing plants face significant operational risks due to the nature of their processes, the high volume of production, and strict food safety requirements.

Key Risks in Food Processing Plants

1. Fire and Explosion Hazards
   The presence of flammable materials, dust accumulation, and poorly maintained electrical installations can trigger fires or explosions that compromise facilities and halt operations.

2. Machinery Failures
   Breakdowns in production lines, refrigeration systems, or packaging equipment can paralyze production and lead to losses due to product deterioration or missed deliveries.

3. Contamination and Product Recall
   A failure in hygienic protocols or a malfunction in temperature control systems can result in contamination of food products, leading to recalls, health risks, and serious financial losses.

4. Natural Disasters and External Events
   Floods, storms, or supply chain disruptions due to external events (e.g., pandemics or geopolitical conflicts) can affect the continuity of operations.

5. Cybersecurity and Operational Risks
   The increasing digitalization of plant operations also introduces exposure to cyberattacks, which could compromise production data or critical control systems.

The Role of Insurance in Risk Mitigation

Having a comprehensive and well-structured insurance program is key to protecting agri-food companies against financial losses resulting from an incident. Key coverages include:

• Property Insurance: Protects facilities, equipment, and inventory.

• Business Interruption Insurance: Compensates for losses due to production stoppages.

• Product Recall Insurance: Covers costs related to recalling contaminated or defective products.

• Environmental Liability Insurance: Addresses pollution or waste discharge issues.

• Cyber Risk Insurance: Protects digital assets and operations from cyber threats.

Best Practices for Managing Claims

️ Immediate Response and Contingency Plans
Develop emergency protocols and train staff in crisis response and containment actions.

Documentation and Recordkeeping
Maintain up-to-date technical and maintenance records of equipment, and keep control records for hygiene and safety protocols.

Independent Expert Advice
Working with an independent advisor allows for a fair, efficient, and collaborative resolution, ensuring that the claim is properly handled and your company’s interests are protected.

Conclusion

The agri-food industry is exposed to complex and diverse risks. Preventing, anticipating, and properly insuring these risks are fundamental to ensuring the continuity and sustainability of operations.

With a proactive strategy, specialized insurance coverage, and expert support, food processing companies can operate with greater peace of mind and resilience in the face of unexpected events.

Explosions and leaks: High-temperature furnaces and the handling of molten metals involve constant risks. A minor malfunction can trigger a large-scale incident.

Fires: The accumulation of metallic dust and deficiencies in electrical systems are common causes of industrial fires.

Electrical failures: Overloaded or poorly maintained installations can lead to short circuits and halt operations.

Human error: Failure to comply with safety protocols or inadequate maintenance are frequent causes of losses, according to various technical studies.

Inadequate design or improvised expansions: Many facilities grow without proper technical planning, increasing the risk of fire propagation or systemic failures.

The Essential Role of Insurance

Having an adequate insurance program is critical to absorb the financial consequences of a loss and to ensure business continuity. Key coverages include:

• All Risk Property Damage (ARPD)

• Machinery Breakdown (MB)

• Consequential Loss (CL)

• Third-Party Liability (TPL)

It is also essential to avoid underinsurance, regularly review insured sums, and adapt policy conditions to reflect the real risk profile, including continuity and recovery clauses.

Keys to Preventing Industrial Losses

✅ Perform regular technical inspections
✅ Prepare risk reports focused on critical areas
✅ Evaluate the layout and zoning of facilities
✅ Provide continuous training on safety procedures
✅ Maintain up-to-date contingency plans

A robust preventive strategy combined with a well-structured insurance policy can significantly reduce risk exposure in the metallurgical sector.

Wind and photovoltaic energy have established themselves as strategic components in the transition to a low-carbon, sustainable energy system. However, the operation of these plants involves a variety of specific risks that require precise identification, technical mitigation strategies, and robust insurance solutions to ensure operational resilience and continuity.

Key Risks in Wind and Solar Power Facilities

1. Extreme Weather Events
Severe storms, hail, flooding, and seismic activity pose a direct threat to critical infrastructure, such as turbine towers, rotor blades, solar panels, inverters, and substations, potentially leading to prolonged outages and significant business interruption losses.

2. Fire and Lightning Risk
Both technologies are exposed to fire hazards—from internal system failures, overheating, or electrical faults—and external threats such as lightning strikes. These events can result in total or partial asset losses and high repair and replacement costs.

3. Mechanical and Electrical Failures
The complexity of electromechanical systems (e.g., gearboxes, transformers, SCADA systems) can lead to unplanned breakdowns, affecting energy production targets and triggering warranty or insurance claims.

4. Occupational Safety Hazards
Operation and maintenance (O&M) activities—especially those involving work at heights or confined spaces in wind turbines—carry a high level of exposure for technicians, increasing the probability of work-related accidents and liability claims.

5. Cybersecurity Threats
Digitalization and remote monitoring (via SCADA systems or IoT platforms) improve efficiency but expose assets to cyber intrusions, potentially disrupting operations or compromising sensitive data.

Why Specialized Insurance Coverage is Critical

A tailored insurance program is essential to ensure financial protection and business continuity in the event of a loss. Key coverages for wind and solar energy assets include:

• All-Risks Property Damage Insurance, including machinery breakdown.
• Business Interruption Coverage, compensating for revenue loss during downtime.
• Third-Party Liability Insurance, protecting against bodily injury or environmental damage claims.
• Environmental Impairment Liability, especially relevant for battery storage and chemical use.
• Cyber Risk Insurance, covering incidents related to system intrusions or data breaches.

Insurance wordings should be adapted to reflect the specific technology deployed, project lifecycle phase (construction vs. operation), and geographical exposure.

Best Practices in Claims Management

When an incident occurs, early intervention and technical coordination are essential to mitigate impact. Effective loss response in the renewable sector should include:

• Pre-defined contingency plans integrated into the plant’s emergency response protocols.
• Real-time incident reporting and claim quantification with support from a dedicated Adjuster of the Insured (not the insurer’s loss adjuster).
• Collaboration with engineers, risk consultants, and insurers to enable a just, agile, and amicable resolution.
• Post-event forensic analysis to improve future resilience and prevent recurrence.

Conclusion

Wind and solar assets, despite their long-term strategic value, are not risk-free. Only through a proactive risk identification process, the implementation of specialized insurance policies, and professional claims support can operators ensure the sustainability and profitability of their energy infrastructure.

At VANTEVO Claims Advisors, we support insureds throughout this process—from risk analysis to post-loss advisory—ensuring their assets remain protected, productive, and aligned with the sector’s technical and financial standards.

2025 presents significant challenges for industrial and business risk management. From cybersecurity threats to regulatory changes, organizations must be prepared for an increasingly complex and dynamic environment.

In this context, reports and surveys from international organizations provide strategic insights to help anticipate emerging risks and make informed decisions.

 The Most Relevant Reports for Risk Management in 2025

Here are the key studies that will shape the risk management agenda in the coming months:

1. Human Development Report (HDR)
Identifies socioeconomic and environmental risks, such as inequality and climate change.
Publication: Q4 2025

2. Global Financial Stability Report (GFSR)
Published by the IMF, this report analyzes the health of the global financial system, focusing on inflation, debt, and market volatility.
Frequency: Biannual

3. Global Risks Report
Produced annually by the World Economic Forum, this report examines major economic, environmental, and technological risks worldwide.
Frequency: Annual

4. Economic Outlook
Evaluates macroeconomic trends such as economic slowdown, inequality, and structural tensions.
Frequency: Biannual

5. Global Assessment Report on Disaster Risk Reduction (GAR)
Focuses on climate resilience and disaster risk management, an increasingly urgent challenge for businesses.
Frequency: Biennial

6. World Development Report
Published by the World Bank, this report addresses global challenges such as food insecurity and climate change.
Frequency: Annual

7. Global Risk Management Report (AON)
Analyzes trends in managing emerging risks such as cybersecurity and geopolitical tensions.
Frequency: Biennial

8. Chief Risk Officers Outlook
A quarterly survey that identifies the most relevant risks for businesses, focusing on political instability and economic volatility.
Frequency: Quarterly

9. Edelman Trust Barometer
An annual study measuring trust in governments, businesses, and NGOs—crucial for reputational risk management.
Publication: January 2025

 Why Are These Reports Crucial for Insured Companies?

Anticipation: Identifying trends and emerging risks enables proactive measures.
Strategic decision-making: With up-to-date information, companies can adjust their risk and insurance management strategies.
Coverage optimization: Helps assess whether existing policies are adequate for current risks.

In a world where uncertainty is constant, having an independent and international advisor specializing in risk, insurance, and claims can make a difference. They can interpret these reports and apply the insights to enhance a company’s protection strategy.

In this edition of the Vantevo Newsletter, we spoke with Leonardo Fuentes, Managing Partner of VANTEVO CLAIMS ADVISORS CHILE, about his career in the insurance sector, the challenges in managing industrial claims, and the key strategies for companies to handle these events efficiently.

From the 2010 Earthquake Experience to Leading Vantevo in Chile

Leonardo entered the world of claims in 2010 after the devastating 8.8-magnitude earthquake in Chile, which resulted in nearly $8 billion in compensation payments. His role in managing these processes allowed him to identify a gap in policyholder representation within the sector.

“It was an experience that opened my eyes to two major needs: first, the importance of having an independent advisor to defend policyholders’ interests, and second, the lack of specialized professionals advocating for policyholders in the Latin American market.”

Over time, this vision led him to pursue a Master’s degree in Risk Management and Insurance in Spain. Later, in 2020, he met with Roberto Revenga, founder of VANTEVO CLAIMS ADVISORS, and his team. They discussed a critical issue: policyholders often faced structural disadvantages against insurers and adjusters. An independent team could level the playing field and facilitate fair and efficient settlements. This discussion led to the founding of VANTEVO CLAIMS ADVISORS CHILE.

The Value of an Independent Advisor in Industrial Claims

One of Vantevo’s key differentiators is its independence. “Unlike some insurance brokers who offer claims advisory services, we do not design insurance policies, so there is no conflict of interest in our representation,” explains Leonardo.

Another key aspect is the company’s ownership structure: Vantevo is owned by its partners, with no external investors demanding profitability, allowing them to focus on solutions that are truly aligned with policyholders’ interests.

“Our philosophy is clear: we seek out-of-court settlements that are fast and fair. With more than 2,800 claims handled, we have reached settlements in 98% of cases, ensuring companies receive what they are entitled to under their policies.”

Key Challenges in Claims Management in Chile and Latin America

For Leonardo, there are three major challenges in the region:

Greater Knowledge and Education: Many companies are unaware of the actual scope of their policies and only react after a claim occurs. Vantevo works on educating policyholders so they can make informed decisions before facing a catastrophic event.
Cost of Policyholder Advisory Services: In some markets, policy clauses allow insurance to cover services like those offered by Vantevo. “This ensures that policyholders have proper representation without incurring additional costs.”
A Proactive Risk Management Culture: In Latin America, many companies see disaster preparedness as an unnecessary expense. However, a proactive strategy can make a significant difference in operational continuity and financial protection.
Innovation and Trends in Industrial Insurance

The insurance sector is evolving with new tools such as parametric policies, which enable automatic payments when certain predefined criteria are met. “While these solutions have yet to gain traction in Latin America, they represent a significant advancement in claim payment speed,” Leonardo notes.

Another key innovation by Vantevo is the creation of Claims Handling Procedures (PAS), which include documents and training sessions to educate companies on how to respond to claims, from expense classification to governance of the process.

Success Stories and the Profitability of Expert Advisory Services

“Every case we have managed in Chile over the past three years has had a positive impact on our clients,” says Leonardo. In some instances, Vantevo has recovered up to 25% more compensation than what insurers initially offered.

“Our service is a profitable investment. Not only do we help maximize compensation based on the contracted policy, but we also suggest changes in future policy designs to prevent coverage gaps,” he adds.

Key Tips for Asset Protection and Claims Management

For Leonardo, the best advice he can give companies is to prepare before a claim occurs. Some key recommendations include:

✔ Reviewing and optimizing policies with independent advisory services.
✔ Training teams in claims management and key documentation.
✔ Conducting drills and risk analysis to identify vulnerabilities.
✔ Including policy clauses that cover independent advisory services (policyholder advisory fee clause).

Conclusion

The future of claims management in Latin America requires a more proactive, informed, and independent approach. Vantevo positions itself as a strategic partner for companies seeking to optimize their insurance policies and ensure efficient claims management.

“The insurance market works and is a key solution for business continuity. From our standpoint, we help policyholders and brokers obtain the best conditions and outcomes in their policies.”

In recent years, Isolated High-Level Depressions (DANA) have become a recurring phenomenon in Spain, leaving floods, material damage and human losses in their wake. The most recent DANA in Valencia once again highlights the need to be prepared not only in terms of infrastructure, but also in the way we manage claims arising from these extreme events.

The Impact of the DANA in Valencia:

The DANA in Valencia brought torrential rains in its wake that affected homes, businesses, roads and crops. The material damage was extensive, and disruptions to economic activity represented a significant blow to families and companies. In situations like this, the question is not only how to rebuild, but also how to do so efficiently and with the necessary support. Fortunately for insurers operating in Spain, in this country there is a public body, the Insurance Compensation Consortium, which is the insurer of catastrophic incidents.

The Role of Insurance in Natural Catastrophes:

In large-scale events such as a DANA, having an adequate insurance policy is crucial. However, the reality is that many times often the coverage contracted is not sufficient or does not align with the real needs of the insured. Added to this is the complexity of managing a massive incident, where insurers, adjusters and the insured must coordinate efforts in a context of high pressure.

• Insufficient Coverage: Often, the damages exceed the limits of the policies contracted, leaving those affected with considerable economic losses.
• Unexpected Exclusions: Sometimes, the specific exclusions of a policy can surprise the insured, leaving some critical aspects of the incident uncovered.
• Delays in Management: Overburdened of care systems and lack of adequate documentation can significantly delay compensation processes.

The Need for Specialized Advice:

This is where the role of a consulting company specialized in claims management, such as Vantevo, becomes fundamental. From the moment the claim occurs until the final resolution, having experts who guide and represent the interests of the insured can make a difference in terms of time, costs and peace of mind.

• Policy Analysis: Ensure that the contracted coverages are aligned with real needs.
• Efficient Documentation: Facilitate and structure the documentation to support the claim.
• Strategic Management: Negotiate with insurers and adjusters to obtain a fair and agile resolution.
• Prevention and Planning: Help companies and individuals better prepare for future climate events.

Final Reflection

DANA in Valencia is a reminder that natural disasters are inevitable, but their consequences can be mitigated with proper preparation and management. Having insurance is not enough; it is essential to know how to use it effectively. In this context, having the support of claims experts can make the difference between a quick recovery and a prolonged process full of uncertainty.

At Vantevo, we believe that each insured deserves personalized representation and advice to face the challenges that claims bring. We are here to help you be prepared and protected against any eventuality.

Jose Moya, director of VANTEVO CLAIMS ADVISORS in Peru will participate next June 30 in Panama City in the Ibero-American Congress of COPAPROSE, a high-level academic event that promotes the aggrandizement of the profession, through the exchange of ideas and experiences among the countries throughout the American Continent. The topic that will be covered will be:

👉 Ports, maritime cargo and the impact of large accidents.

In the attached informative Brochure you can see the complete agenda for June 28, 29 and 30 that the event lasts with all the speakers and topics that will be discussed.