Steel City Re

Reputation

Nine out of 10 companies today mention reputation, its materiality, and the gravity of its loss in their annual reports. Most mistakenly confuse reputation with public opinion. It can be a very costly misunderstanding.

 

Reputation is an expectation of behavior. Its value is measurable, and therefore it is manageable and insurable. Steel City Re, which would like to be thought of as the “Hartford Steam Boiler Inspection and Insurance Company” for reputation, helps its clients manage and insure that value.¹

 

We offer a range of risk management and financing products and services. Through our advisory arm, we help deploy state-of-the-art reputation risk governance and enterprise risk management solutions. Our risk financing and risk transfer arm provides unparalleled pricing and underwriting support for insurance captives. Our parametric risk transfer solutions in collaboration with the Lloyd’s syndicate, Tokio Marine Kiln, provide value-enhancing third-party warranties, in the form of insurance, that boost stakeholders’ confidence in companies’ leadership, governance and risk management practices.

 

Download here a one-page Solution Executive Summary.

 

No person, company, institution, or country is immune to reputation risk. In today’s social media–driven environment, changes in expectations—i.e., cultural shifts—can occur at speeds never experienced before. Companies need to view these risks as they would view tornadoes. Once an event is upon you, as these reputation risk vignettes illustrate (download here), it’s too late.

 

What’s your strategy?

 

¹Hartford Steam Boiler Inspection and Insurance Company is an operating group of Munich Re [Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen (XETRA: MUV2)]. It is not affiliated in any way with Steel City Re, LLC.

Reputational Value

Steel City Re provides advisory services to help companies create, protect and restore reputation value.

 

Reputation value is the economic value of stakeholders’ expected benefits from an association, product, or service.  Reputation risk is the peril of economic or political value loss from emotionally energized disappointed stakeholders.

 

The peril involves actions by stakeholders and three contributing variables: their expectations, their experience of reality, and the enhancement of both by media. We believe that focusing exclusively on the media arm of this triangle obscures risk scenarios arising from either changes in stakeholder expectations or stakeholder experiences. This is especially problematic in current times when many of the reputation crises are products of culturally driven changes in expectations.

 

Best practices today comprise a reputation risk governance system representing the ideas, beliefs and practices of the enterprise; and an operational enterprise risk management apparatus that integrates data on stakeholder expectations and coordinates efforts among the functional corporate silos of communications, operations, legal/compliance, human resources, and risk.

 

What’s your strategy?

 

 

Reputation Assurance

Steel City Re provides reputation risk financing and reputation risk transfer solutions in collaboration with the Lloyd’s syndicate, Tokio Marine Kiln [Tokio Marine Holdings Inc. (8766:JP)]

 

Since we began offering risk financing products 5 years ago, appreciation of the peril has grown by 28%. In most board risk surveys, it ranks regularly among the top 3 concerns.

 

Our reputation risk finance and transfer solutions are parametric and on the cutting edge of new classes of risk solutions. On May 1, 2018, we announced improvements into our value loss algorithms – enhancements that will reduce costs and increase underwriting clarity for our Reputation Assurance clients.

 

Indemnification is triggered by the magnitude of impairment of the reputation value parameter, with fractional payments linked to progressive Loss Gates. A downloadable pro forma graphic analysis of Chipotle’s (NYSE:CMG) loss of reputational value in 2015 after a series of food safety issues is illustrative.

 

Our reputation risk client mix includes companies seeking solutions for regulatory compliance, elevation and differentiation in the capital markets, and personal protection for directors and officers who are exposed to the punishment of weaponized social media. Solutions are also available for small and medium-sized enterprises.

 

What’s your strategic need?

 

Return on Investment

 

Managing reputation risk at an enterprise level with risk governance oversight can create significant value for stakeholders, provided stakeholders become aware of the newly developed capability. Compelling evidence of improved risk management includes such actions as the acceptance and pricing of a new risk by a reputation assurance underwriter. Risks and value differ by class of stakeholder:

 

 

What are your strategic metrics?

 

About Us

Steel City Re is a Pittsburgh, PA-headquartered leader in corporate reputation measurement, risk management, and risk transfer. Steel City Re is the Overseas Specialty Broker/Advisor to syndicates comprising various underwriters at Lloyd’s and various insurance companies led by Tokio Marine Kiln. In addition to enabling diverse reputation governance, control, and risk transfer solutions for companies, their directors and officers, Steel City Re’s Reputation Value Metrics empower third-party investment strategies and equity indices.

 

Follow Steel City Re’s CEO Nir Kossovsky and the indexes, research and other data he and the firm produces, on our social media platforms LinkedIn and Twitter.

 


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Nir Kossovsky

Chairman of the Board and CEO

Dr. Nir Kossovsky, co-founder of Steel City Re, is an authority on business process risk and reputational value and holds more than a dozen patents, including Reputational Value Metrics. He is also a founder, director, and executive with Bellrock Intelligence, a health information technology company. Previously, he served on the boards of Patent & License Exchange and Littlearth, Inc.; was a consultant to the FDA’s medical device advisory panels; and is featured in case studies from Harvard and Darden Schools of Business. He is currently executive secretary of the Intangible Asset Finance Society.

Peter Gerken

Director and Senior Vice President

Mr. Gerken leads Steel City Re’s underwriting, broker relations and development services where he works with brokers, captive managers, as well as directly with senior risk and finance executives. Mr. Gerken has been in the commercial insurance industry as both an insurer and broker for 35 years. Over the past 15 years, Mr. Gerken has specialized in intellectual property, intangible asset, and reputation value solutions. Previously, Mr. Gerken was IP Practice Leader at Marsh. Mr. Gerken has an MBA in Management from Bernard Baruch College (CUNY), and holds the CPCU designation.


William McGinty

Director

Mr. McGinty is formerly Senior Managing Director of the NASDAQ Insurance Agency. He is currently with the ELS group, an insurance brokerage specializing in the needs of high net worth individuals. Previously, he served as a founding partner and President & COO of American Wholesale (currently operating as AMWINS), a national property & casualty and Employee Benefits Insurance firm. Bill also served in various senior management positions for the Sedgwick Group, including New York Regional COO and Director of US Office Operations.

Paul Liebman

Director

Mr. Liebman is the Chief Compliance Officer and Director of University Compliance Services at The University of Texas at Austin, which is one of the largest public research universities in the world. Previously he held legal and compliance leadership roles at Exxon, Koch Industries and Dell. Mr. Liebman has been advocating for more than 25 years that a reputation for acting legally and ethically is a significant source of enterprise value. He is a recognized thought leader in the governance, risk and compliance (GRC) community, was elected an OCEG Fellow by his peers, and was named to the list of GRC Pioneers and Trailblazers by The National Law Journal.


Contact Us

Steel City Re is the Overseas Specialty Broker/Advisor to syndicates comprising various underwriters at Lloyd’s and various insurance companies, on a Line Slip approach, led by Kiln Tokio Marine Group.

US Steel Tower
600 Grant Street
Suite 4940
Pittsburgh, PA 15219-2703

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US Steel Tower
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