Veratect Corporation introduces revolutionary system to insurance industry at rendezvous for protecting and expanding corporate profitability during emerging biological threats

Company to unveil Foreshadow™ early warning and tracking system at industry conference and review potential methods for accessing unique opportunities driven by social disruption.

The spread of infectious disease and the threat of terrorism have become acute challenges to a globally connected business world; but recent improvements in early warning and tracking will now enable corporations to not only better defend themselves, but to also find strategic opportunities to grow and become more profitable amidst the disruption, according to Scot Land, CEO of the Veratect Corporation.

Veratect was established last year to create the fastest possible identification of social disruption driven by man-made or naturally occurring biological threats to human, animal and plant life.

“In the last decade we have seen globalization greatly expand the reach, speed and efficiency of business,” said Land. “Unfortunately, globalization has had the same effect on disease. It now travels farther, faster and more efficiently than ever before and with catastrophic consequences.

A person with a human case of Avian Influenza (H5N1) in Asia, for example, can be in London, Dubai, Moscow, New York or dozens of other major cities in less than 24 hours; the economic impact to global businesses, their insurers / reinsurers and stakeholders can be extraordinarily debilitating,” said Land.

Any significant disruption to existing social and business patterns inevitably present both challenges and opportunities. Companies with deep and timely situational awareness about their business are far more likely to not only survive the inevitable disruptions in their industry, but can emerge stronger for it.

“When a market or an industry is disrupted, even if for only a few days, the companies with the most current, actionable data can take competitive measures not normally available in a given business cycle. It is in these moments when the best prepared businesses can not only protect their own interests, but use the situation to grow market share and/or margins,” Land continued. “For the insurance industry, Veratect’s ability to provide faster, more advanced threat identification, risk assessment, ground verification, tracking and analytical capabilities will inspire new product development, pricing and financial strategies that can redefine capital allocation.”

The Veratect Foreshadow™ system provides the earliest possible actionable information and analysis that can identify a broad range of global biological threats in both natural and weaponized forms, according to Jim Wilson, Veratect’s Chief Science Officer, who worked with the World Health Organization, NASA, NOAA, the US Army and the Department of Homeland Security before joining Veratect.
The potential applications for Veratect are virtually unlimited given its analytical capabilities and global view across multiple industries.

“Foreshadow™ presently covers a significant majority of the world’s population and across more than 30 languages. Currently we are monitoring potential threats to more than 500 corporations with over one million discreet corporate locations and facilities as well as the world’s shipping, power and transportation grids,” said Land.

“To date, this level of information and the proprietary metrics applied by Veratect has not been available to the private sector. Our mission is straightforward: we empower both the private and public sectors with the earliest possible warning so that they can better manage their risk exposures and take the earliest possible action to mitigate and/or exercise opportunity before it is too late.”

“Having the best possible situational awareness for essentially all industries is much more than a good defensive move; it can also provide a significant competitive advantage,” said Kevin Hart, Senior Vice President of Sales for Veratect. “Disruption to one person’s business can be an opportunity for a competitor with the ability to recognize and respond to the events earlier. Given the speed of business today, the advantage of having the most timely and actionable information with applied metrics matters a great deal when a competitor or entire market becomes destabilized or realizes recovery.”

Veratect’s Foreshadow analytical system is also focused animal and plant borne disease. The economic impact of outbreaks such as “Mad Cow” disease or the Hoof and Mouth Disease outbreak can cost tens of billions of Euros and the recovery time for an affected industry can take years. According to Veratect, the increase of potentially severe food safety threats such as the recent salmonella and E-Coli outbreaks, can now be more effectively detected, quantified and tracked enabling the related industries insurers to apply stronger underwriting and risk management protocols.

“The threats to human, animal and plant safety now carry greater financial implications for corporations and their insurance companies. The recently passed British Corporate Manslaughter Act signals a trend toward far greater liability to corporations for the safety of their own employees. Corporate negligence in the face a clear and present risk will be expensive going forward. As the risks become more apparent, verifiable and quantified, corporations will need to respond. Veratect enables companies to be more vigilant in addressing these new requirements for the employees well being and the subsequent potential safeguarding of a corporations stakeholders and insurers.

One of the key components to Veratect is the PEERview™ (Proprietary Economic Exposure Reference view) system which helps corporations apply the risk economics that track directly to its operations and quantify the potential impact of both emerging and abating risk events as applied to their net income, gross revenue, and shareholder equity. “For the insurance industry, Veratect’s earliest possible risk-based quantitative information will enable commercial customers, whether an insurer, reinsurer or their global customer to understand their risk profile more than ever before” said Hart.

Veratect will be providing demonstration of its Foreshadow™ early detection, identification and tracking system and highlighting the exposure the insurance industry presents itself, at an operating level, at its Crises Center during the reinsurance industry’s Rendezvous de Septembre in Monte Carlo located in the Zephyr room at Le Meridien Beach Plaza.