Kathmandu. Data center owners and investors have been urged to reconsider their insurance buying practices. That’s because many companies are offering big insurance because of a lack of understanding of their true risks. <\/p>\n
According to global insurance broker Willis, the rapid growth of artificial intelligence (AI) has prompted developers and operators to focus on securing large insurance in an increasingly big way. While up to $15 billion in insurance coverage exists globally for large-scale data center risks, Willis said that simply buying more cover is not a guarantee of better protection. <\/p>\n
In the Asia Pacific region, risk profiles go beyond basic asset values. Site selection varies significantly based on power infrastructure, construction method, supply chain, climate factors and cyber risk. <\/p>\n
Willis advises companies to take a data-led approach to evaluate those risks, from project lifecycle design to operation. Prioritizing risk engineering and resilience investing at the beginning of property design can often reduce risk more effectively than purchasing a higher insurance threshold. <\/p>\n
Preventive measures such as flood safety, wind protection, earthquake design updates, heat protection and explosion protection not only reduce unnecessary insurance costs but also strengthen operations and improve credit terms with lenders and investors. <\/p>\n
According to Xi Ong, head of digital infrastructure industry for Asia at Willis, increasingly energy-intensive services are forcing companies in the region to reassess their dependencies and disruption risks. Moving away from market practices and toward verified risk data allows stakeholders to align their coverage with real risk levels, ensuring capital is appropriately allocated as digital infrastructure grows. \u2013Agency<\/p>\n","protected":false},"excerpt":{"rendered":"
Kathmandu. Data center owners and investors have been urged to reconsider their insurance buying practices. That’s because many companies are offering big insurance because of a lack of understanding of their true risks. According to global insurance broker Willis, the rapid growth of artificial intelligence (AI) has prompted developers and operators to focus on securing […]<\/p>\n","protected":false},"author":16,"featured_media":309143,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45031,45044,45159],"tags":[],"class_list":["post-309147","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banner-news-en","category-international-news-en","category-news-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/309147","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/comments?post=309147"}],"version-history":[{"count":1,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/309147\/revisions"}],"predecessor-version":[{"id":309148,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/309147\/revisions\/309148"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/309143"}],"wp:attachment":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=309147"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=309147"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=309147"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}