Exhibition Underwriting Experience and Risk Analysis
CPIC P/C provides exclusive or chief insurance for CHINAPLAS, China International Industry Fair and other large-scale exhibitions held at the National Exhibition and Convention Center, as well as large-scale events and venues such as F1 events and Shanghai Disneyland. It has a deep understanding on the exhibition organization risk of the National Exhibition and Convention Center, and the risk of large-scale crowded event/venue, equipped with the ability and experience to respond to emergencies.
(held at the National Exhibition and Convention Center)
|For 7 consecutive years, it has provided exclusive insurance services to CHINAPLAS (the largest in Asia, and the second largest international rubber and plastics exhibition in the world), covering more than 2,000 exhibitors per session.
||China International Industry Fair
(held at the National Exhibition and Convention Center)
|For 5 consecutive years, it has provided exclusive insurance services to China International Industry Fair, covering more than 2,500 exhibitors with more than 160,000 Chinese and foreign professional visitors.
||China International Aviation and Aerospace Exhibition
||It has provided exclusive insurance services to China International Aviation and Aerospace Exhibition (one of the world's five most internationally influential airshows, with an insurance coverage amount of approximately RMB 40 billion per session.) for many consecutive years.
||FIA Formula One Grand Prix Championship (F1)
||It has provided general liability insurance for F1 Shanghai Station (one of the “World's Three Major Sports Events”, with the highest instantaneous visitor flowrate of Shanghai Station reaching 150,000) for many consecutive years.
Shanghai Disneyland Park
|As the sole insurance industry sponsor and chief insurance service provider of Shanghai Disneyland, it provides a whole life cycle and comprehensive risk coverage service for the operational period with an average daily traffic of over 30,000 persons and a single-day peak over 100,000 persons.
||The China Import and Export Fair (Canton Fair)
||Since 2013, it has provided the exhibition liability insurance for the China Import and Export Fair for many consecutive years.
||China (Shanghai) International Boat Show
||It has provided general exhibition liability insurance for the China (Shanghai) International Boat Show - Boat and its Technical Equipment Exhibition for many consecutive years.
2010 Shanghai World Expo
|It provided insurance solutions and risk prevention services for more than 190 countries and 56 international organizations at the 2010 World Expo, covering 73.08 million persons.
China International Furniture Expo
|It has exclusively provided insurance for China International Furniture Expo (one of the most important platforms for the world furniture trade, serving nearly 100,000 visitors from 160 countries and regions) for many consecutive years.
||2014 Shanghai Stampede
||It rapidly responded to the Shanghai Stampede on December 31, 2014, and provided emergency funds of RMB 25 million for major events, which gave a strong financial guarantee for the Shanghai Municipal Government's rapid emergency response.
Risk Analysis of the Exhibition Industry
2.1 Risk of material loss
2.1.1 Transportation risk
The materials, exhibits, equipment and other materials used for the exhibition installation transported from the storage location to the exhibition venue are all subject to potential losses due to accidents, theft, damages by rainwater, and damages by the breakage of packages, etc. In this process, the exhibition activities are mainly facing the logistics and transportation risks.
①Property loss caused by cargo damage
②Late delivery loss
③Loss caused by wrong shipping
2.1.2 Exhibition installation risk
From the statistics of exhibition accidents in the world in recent years, it is found that about 20% of the exhibition accidents originate from the collapse of the booths and steel frame structures, the occurrence of which is mainly caused by the negligence of the organizers in site selection and venue management. As a result, it puts higher requirements on the safety assessment in the pre-exhibition management. About 15% of the exhibition accidents are caused by equipment, such as fire caused by short circuit, overload of power equipment, fire caused by excessive temperature or excessive load of the ventilation equipment, explosion caused by excessive load of lighting equipment, and accidents caused by leakage of electrical equipment and so on.
The venues, structures and related equipment are the carriers of the exhibition activities, which, together with the participants, constitute the main body of the safe operation of the exhibition activities. The safety level of the exhibition venue directly affects the safe and smooth operation of the exhibition.
There are two types of venues for exhibitions: open space and closed space. Open space mainly relies on plazas, roads, public green spaces and recreational spaces; while closed spaces are mostly fixed places, and exhibitions are held in high-rise buildings, underground shopping malls, indoor stadiums, museums, etc.
The layout of the exhibition venue and the effective allocation of emergency materials are the basic requirements for the prevention and control of accidents during the exhibition, which also play an important role in reducing the impact of accidents.
Installation risk of the exhibition venue
Installation risk of the booth
Installation risk of the equipment
2.1.3 Risk analysis during the exhibition
Risk of material loss due to theft
Risk of material loss due to the exhibition venue
Risk of material loss due to environmental factors
2.1.4 Risk of dismantling of the exhibition venue
In principle, the process of dismantling the exhibition venues, equipment and booths after the exhibition is the reverse of the installation process. Therefore, it will not be described in detail in this article.
2.2 Risk of financial loss
Financial losses mainly refer to the cancellation or postponement of the exhibition, which incurs losses to the organizers and exhibitors. The reason for this is similar to the transportation risk mentioned in Section 3.1.1 and thus will not be repeated. Besides, mass disasters such as war, terrorist attack, environmental pollution, disease outbreak, etc. which occur at the venue of the exhibition can also lead to the risk of financial losses of the exhibition.
In addition, the following risks are also financial loss risks:
The proceeds have not reached the pre-estimation due to various reasons such as difficulty in finding suitable exhibition sponsors, unsatisfactory sales of TV rights and tickets;
The depreciation due to the exchange rate change;
The rise in interest rates has led to an increase in loan costs, making investments exceed budgets;
All of the above reasons may result in the exhibition being unable to be held as scheduled, cancelled or interrupted, resulting in the failure of the exhibition, and thus resulting in financial losses or claims.
To this end, when considering risk counter-measures, it is also necessary to examine the local social environment and policy factors of the place where the exhibition is held.
2.3 Risk of legal liability
The risk of legal liability of the exhibition includes the liability for compensation pursuant to the law caused by the negligence or fault of the exhibition organizer or exhibitor during the exhibition, which results in property loss or personal injury or death of others.
Legal disputes at the exhibition site
The legal disputes at the exhibition site mainly include two kinds of intellectual property rights issues: the infringement by exhibits and the infringement by important items in the exhibition.
The security risk refers to the risk of serious accidents such as personal injury, property damage and information theft due to the failure of the security facilities, systems and measures in the exhibition venue to meet the national mandatory standards or operational failures of the said.
2.4 Risk of personal casualty loss
The risk of personal casualty loss is mainly reflected in the mass panic caused by emergencies and mass incidents due to the number of participants exceeding the carrying capacity of the venue.
Too many people often trigger accidents. The increase in occupant density can cause equipment and sites that could have been normally operated to fail to work properly, and even cause damage to the original site, order, and equipment. At the same time, it also makes minor insecurities, even those that do not have dangers, face increasing risks, which finally leads to accidents.
The venues for conventions and exhibitions are generally located in large venues, open air or specific public gathering places. During the exhibition, a large number of people gathered together. Once an accident occurs, due to people's panic and other reasons, it is easy to incur a chain reaction, which may lead to serious consequences unimaginable under normal conditions. Crowding is the most important cause of the accident expansion. Moreover, some people in the exhibition activities have strong mobility, which has a dynamic impact on the system security. The sudden direction changes and the change from low-speed to high-speed of the people flow can cause anisotropic flow and heterogeneous flow in the cluster, resulting in stampede accidents.
Suddenness and uncertainty
Multiple factors interact with each other to make the cause of the accident more complicated
2.5 Risk of other accidental loss
Other factors of unexpected risk in the exhibition are:
①Human resource risk
Human resource risk is mainly manifested in
a. The impact on the exhibition operation caused by the resignation or sick leave of the important staff of the organizer;
b. The delay or even cancellation of the exhibition caused by failure of attendance of important personnel.
Moral hazard refers to the risks arising from the understanding on, management of people. Common risks include:
a. The relevant staff of the organizer deliberately embezzles the public property, infringe on the interests of the employer or undermine the normal operation of the exhibition;
b. Some exhibitors or visitors deliberately damage the property or fabricate accidents in order to obtain improper benefits from the insurance.
Most of the props such as lighting, sound, and promotional films of modern exhibitions rely on information technology equipment such as computers. IT risk refers to direct and indirect losses caused by natural disasters or accidents in systems and equipment, including:
a. The computer or server hardware equipment suffers natural disasters, and the equipment or system is damaged or collapsed due to accidents, which may further result in the stadiums, facilities, etc. in the venue being unable to operate normally or even collapse;
b. Hardware and software damage and information loss caused by hacking, computer virus infection, etc.
④Health, hygiene and food risks
Health, hygiene and food risks refer to the risks associated with personal health, food hygiene, environmental pollution, etc. caused by operational processes, measures, services, products, etc. to the third party during the exhibition, including:
a. The physical discomfort or illness suffered by exhibition organizers, sponsors, visitors and exhibitors due to the consumption of unclean food and drinking water provided in the exhibition venue;
b. Failure to properly dispose of domestic garbage and waste in the exhibition venue, which affects the sanitation of the exhibition venue and surrounding environment;
c. Failure to effectively control the potential pollution sources in the exhibition venues, resulting in leakage of pollutants, and thus affecting the exhibition venue and the surrounding environment.
⑤Risk of terrorism
Terrorism has gradually become the focus of global attention. Terrorist activities against world-class events and festivals have always existed. In the 1972 Munich Olympics, the Palestinian "Black September" kidnapped members of the Israeli delegation, causing the death of 11 members.
In consideration of the social situation and anti-terrorism efficiency and ability of China, the risk of terrorist attacks on exhibitions held in China is relatively small.
⑥Vehicle liability risk
Vehicle liability refers to the civil liability for compensation pursuant to the law arising from the personal injury or property damage to a third party caused by vehicles, ships and aircraft operating in the exhibition venue.
Some large-scale exhibitions are equipped with on-site motor vehicles, ships and even helicopters, hot air balloons and other aircraft. From the perspective of risk, once an accident occurs in a vehicle, it is easy to cause large-scale casualties and property losses.