Property insurance considerations in loss prevention expenditures


  • Gail P. Norstrom

    1. Industrial Risk Insurers, 85 Woodland Street, Hartford, CT 06102
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    • Gail P. Norstrom is employed by Industrial Insurers, Hartford, Connecticut. He is Vice President in charge of IRI's Midwest and West Coast operations as well as reinsurance and marketing functions. Previous assignments with IRI involved a variety of positions engaged in Loss Prevention and Underwriting activities with the Chemical Process Industry. He is a graduate of the University of Tulsa with a Bachelor of Science in Engineering Physics and also holds a Master's Degree in Physics and Management from the University of Illinois and Northwestern University respectively. He is the author of a number of articles dealing with analysis of fire and explosion losses in the CPI.


Certain components comprise the Property Insurance premium. The sensitivity of those components to changes in the risk are analyzed considering the insurance market. The cyclic nature of the insurance market can also impact a Property Insurance program in other, less tangible, ways. Tangible premium charges and other intangible costs of risk which are dependent upon Loss Prevention expenditures are broadly quantified. Those factors which can be useful in determining the cost effectiveness of loss prevention expenditures are discussed in detail.