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Fire risk insurance seminar for refrigerated warehouses : a review
By Lizelle van der Berg , director – GCCA South Africa
Obtaining insurance has become challenging for refrigerated facilities in South Africa and globally , especially for those that do not have what is seen as acceptable fire protection .
All image credits : GCCA-SA
To address these challenges , the Global Cold Chain Alliance hosted a full day , in-person Fire Risk Insurance Seminar in Johannesburg on 10 March 2022 . The seminar brought together 64 temperature-controlled warehousing and logistics executives from all over South Africa for discussions , innovations , trends , and networking . This event was initiated by the GCCA Risk Management Committee at a committee meeting held in September last year .
GCCA RISK MANAGEMENT COMMITTEE CHALLENGE OVERVIEW Gerhard Coetzee , the financial director of Sequence Logistics and vice chairman of the GCCA Risk Management Committee gave an overview of the challenges experienced by the industry , including the percentage increases in insurance rates over recent years and the fact that acquiring insurance is an even bigger challenge for some of the players in the industry .
Pieter Kruger from Marsh addressing the audience .
Coetzee further explained that the industry remains unsure if they are making the best possible investment decisions in terms of fire risk and ensuring that facilities are safeguarded with the best possible prevention and firefighting solutions available and that those solutions are inline with what is required from insurers .
OXYGEN REDUCTION SYSTEMS Allan Cunninghame from Nitro-Gen Africa gave a detailed overview of oxygen reduction systems , as an alternative to sprinkler or foam fire suppression installations as an approved fire prevention system for cold and freezer rooms . Oxygen controlled environments are noncombustible areas and provide a proactive approach to fire prevention rather than a reactive approach .
A human being only breathes about 17 % oxygen which is the same level these freezer rooms are kept at . It is completely safe for staff to work in . Cunninghame further explained the current compliance
The GCCA Fire Risk Insurance Seminar that took place in JHB on 10 March 2022 .
and that there are both local and international standards to follow .
“ When changing to a nitrogen system , always make sure you are complying with standards and make sure you are keeping the structural integrity of the freezer room – this is critical ” says Cunninghame .
A case study was presented on the oxygen reduction system that was installed at the Euroberry distribution centre in Somerset West .
INSURANCE MARKET TRENDS Pieter Kruger from Marsh explained that the biggest problem about insurance claims is business interruption claims and that the market has changed drastically . Contributing to the change is a consistent inability to achieve underwriting profits , a material decline in investment income , a reduction in available risk capital , historical under-pricing , and a confluence of industry events , both man-made and naturally occurring .
Covid claims have become more common in insurance , which has also changed the industry drastically . This has resulted in larger companies increasing the use of data and analytics to ensure that their risk financing decisions are informed , data driven and sustainable and many players are either reassessing the strategic use and value of soft-insurance or considering the formation of a specialist self-insurance model at the centre of their risk financing strategy .
As per Kruger , it seems that markets are pressurised by reinsurers to impose blanket grid-failure exclusions . To improve your insurance renewal process you should start early and stick to an agreed timetable , identify your risk tolerance , understand the market , avoid gaps in information , expect questions , highlight lessons learnt , sell your risk , use your relationships , cast the net wider and you should have a plan B .
REDUCING THE RISK Karel Roodt from The Fire Engineer described the key fire engineering segments and how to comply with South African national building regulations . He then took the audience through a case study of a fire risk assessment that was undertaken at a bulk apple & pear supplier just outside of Grabouw in the Western Cape .
The scope is to identify credible and realistically probable events and identify the layout of the facility . When it comes to the process , Roodt explained that you need to assess the area , assess the likelihood of a fire starting , assess the people at risk , assess the operational continuity risk , assess fire brigade access , and consolidate the fire risk findings and give recommendations . Roodt proceeded in providing a high-level overview of the different fire systems and alternatives .
FOAM SPRINKLERS Hannes Pretorius of Paragon Systems Design explained this wet sprinkler system that combines water and a foaming agent for large scale fire extinguishment which can extinguish extensive fires in mere seconds with incredible efficiency . The water and foam mix will not freeze in a pipe grid .
The foam blankets the surface , smothering the fire . It suppresses the release of flammable vapours and creates a barrier between the fuel and the fire . Pretorius further explains that the foam lowers the surface tension of water and allows it to penetrate deep seated fires .
Due to the high expansion ratios , less water storage and delivery capacity is required . There is less damage to electrical and electronic equipment and waste & contamination control is easier and safer . Frozen foams can be removed by mechanical means , as opposed to frozen water and thus mobile racking will still be able to move .
Contributing to the change is a consistent inability to achieve underwriting profits , a material decline in investment income , a reduction in available risk capital .
SMOKE DETECTION Lian van der Merwe of Exodus Group gave an overview of the latest innovations in smoke detection technology specifically designed for extreme temperature environments that will soon be launched . This breakthrough technology will revolutionise the way forward in controlledtemperature conditions to aid in fire detection . Van der Merwe further explained the practical applications , installation criteria and financial benefits .
INSULATED PANELS Tammy Grove of Kingspan explained that not all insulation is the same and that the building fabric used is a crucial part of a holistic fire safe design . The general term “ foam insulation ” is used but is misleading .
18 www . coldlinkafrica . co . za COLD LINK AFRICA • May 2022