Willis Limited Energy Loss Database - Global Insurance Broker - Willis

Energy Loss DatabaseWillis Limited

One Camomile StreetLondon EC3A 7LATelephone: +44 (0)20 7488 8111Direct fax: +44 (0)20 7975 2402

Website: www.willis.com

A Lloyd’s Broker and Member of the General Insurance StandardsCouncil Registered Office: Ten Trinity Square, London EC3P 3AX

Registered Number: 181116 England & WalesGLM/2155/08/04

willis 12pp 3/9/04 7:54 am

Willis is over 14,500professionals in300 offices aroundthe world, allworking togethertowards one goal:helping ourclients succeed.

Designed by the Willis, Global Design Centre and printed by the Astron Group.

willis 12pp 3/9/04 7:54 am Page 3

Willis Energy Loss Database August 2004 1

Database InformationWillis, the global insurancebroker, has established the mostcomprehensive database of energylosses in the world. This facility isunique and widely used by insureds,insurers, loss adjusters and otherbrokers throughout the industry.


2 Willis Energy Loss Database August 2004

What it provides

The database provides a vehicle by which insuredsand insurers can analyse current and historical lossinformation and make informed decisions on insurancestrategy. Comparisons between individual and industryexperiences can be made and this has proved invaluableto both risk management departments and energy insurers.

The Database

A threshold of $1,000,000 has been imposed for losses toqualify for the database and we now have thousands ofentries from 1972 to date.

Type of Losses Captured

Our focus has been on property related losses rather thanindividual death or injury claims. Difficulties in obtainingaccurate information on isolated death and injury claimshave been encountered due to non-disclosure agreements,appeals etc. and we questioned the relevance of many ofthe figures that included substantial punitive damageawards. Third party property losses and sudden andaccidental pollution claims are included, as are death andinjury settlements that formed part of recognised figuresfor major property claims (e.g. Piper Alpha).

In recognition of the continuing disintegration of thetraditional boundary between upstream and downstreamactivities, the database captures all activities associatedwith the energy insurance sector. Examples include:platforms, pipelines, rigs, pipelay vessels, FPSOs, FSUs,SBMs, refineries, petrochemical and chemical plants,loading terminals, tank farms, gas transmission stations,utilities and power stations. Oil tankers, Oil/LNG cargoes orother interests associated with the marine sector are notincluded. We also do not include those interestsconsidered domestic retail such as petrol stations.

Database Information – continued



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US$ Incidents

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Year Description Total Claim US$ Million1988 Piper Alpha Platform, North Sea 1,4801992 Hurricane Andrew (Various), Gulf of Mexico 5501989 South Pass Platforms, Gulf of Mexico 5201991 Sleipner Platform, North Sea 3631988 Enchova Platform, Brazil 3251992 Goodwyn A Platform, Australia 2311987 Bourbon Platform, Gulf of Mexico 2001982 Nigg Bayjacket loss (BI), Scotland 1701999 North Nemba, Indonesia 1601989 Sidki Platform, Gulf of Suez 127

Top Ten Platform Losses

0302010099989796959493929190898887868584838281807978777675747372

North Sea Operating Losses (ex. Piper Alpha)

Years

No. of Incidents

US$


500

400

300

200

100

0

30

25

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US$ Incidents



Breakdown of Costs

There are three categories of cost breakdown. Physicaldamage/liability, operator’s extra expense and businessinterruption. Wherever possible, figures are included onthe basis of cost to the assured rather than thoserecoverable under any insurance policy. Therefore excludeditems, deductibles and limits are not taken into account.Business interruption is only included if a realistic figureis available and this is not grossed up to include otheroperating parties if they have a policy of not purchasingthis type of coverage.

Cost Category No. of incidents TotalIndexed OEE$

$1 – 2.5m 178 292,556,849$2.5 – 5m 115 395,202,792$5 – 10m 68 483,419,164$10 – 15m 18 215,305,561$15 – 20m 10 171,624,758$20 – 25m 2 44,917,479$25 – 30m 4 110,511,693$30 – 35m 1 65,812,758$40 – 45m 1 41,645,530$45 – 50m 1 46,271,000$50 – 60m 0 0$60 – 70m 1 67,687,542Totals 400 1,934,955,127

Information available fromthe Database

Having established the specific search criteria of anenquirer, the database will produce summary reportsbased on the records found. These reports will show thenumber of incidents together with aggregate and averageclaim amounts, based on actual or current day figures,broken down by:

– year– geographical location– property type– individual claim cost.

...the database

captures all activities

associated with the

energy insurance sector.

Typical Search Example

The search criteria requested onshore operators extraexpense losses in North America at current prices.




Access to Information

The database is available to subscribers on the internetand is updated frequently. Analytical reports can be rundirectly from the on-line facility and each report includesthe subscribers’ company name in the heading. It is alsopossible to download tables into spreadsheets for furtheranaylsis and charting.

The database forms part of the Willis on-line facilities andis accessed (with a password) via the Willis website athttp://www.willis.com.

Willis is committed

to maintaining and

developing this

database to the highest

standard achievable.


Further Information andDemonstrations

For further information about the database and/or toarrange for a demonstration please contact:

Andrew JacksonGlobal Markets

Willis LimitedOne Camomile StreetLondon EC3A 7LADirect line: +44 (0)20 7488 8234Fax: +44 (0)20 7975 2480)e-mail: [email protected] your usual Willis representative.



Report Examples

The following pages are actual examples of reports taken from the Internet database and demonstrate a comparison ofoffshore construction and offshore operating losses during the period of 1980 to 1990 broken down by:– year– cause– cost category indexed to current day values.

The final example is a listing of the top 30 offshore operating losses during the same period.

Analysis by CauseYear Incidents Total Actual US$ Average Actual US$ Total Indexed US$ Average Indexed US$(unknown) 52 199,394,910 3,834,518 240,520,960 4,625,403Anchor/jacking/trawl 23 97,567,541 4,242,067 115,050,797 5,002,209Design/workmanship 85 649,030,987 7,635,659 790,496,652 9,299,961Fire/lightning/explosion 1 5,298,000 5,298,000 6,472,745 6,472,745Heavy weather 14 74,422,664 5,315,905 92,369,603 6,597,829Impact 7 23,986,840 3,426,691 29,355,748 4,193,678Mechanical Failure 8 28,253,005 3,531,626 31,693,704 3,961,713Piling Operations 15 57,134,772 3,808,985 66,453,443 4,430,230Pipelaying/trenching 21 58,697,302 2,795,110 67,597,229 3,218,916Windstorm 2 11,303,880 5,651,940 12,705,042 6,352,521Total 228 1,205,089,901 5,285,482 1,452,715,923 6,371,561

Analysis by Cost CategoryCost Category Incidents Total US$A.$1 – 2.5M 85 152,624,797B.$2.5 – 5M 64 227,297,079C.$5 – 10M 53 358,974,991D.$10 – 15M 12 145,218,425E.$15 – 20M 5 84,641,266F.$20 – 25M 2 43,956,289G.$25 – 30M 1 28,223,975H.$30 – 35M 1 32,613,251K.$45 – 50M 2 95,149,771L.$50 – 60M 1 52,465,480O.$80 – 90M 1 89,203,595Q.$100M + 1 142,347,003

Analysis by YearYear Incidents Total Actual US$ Average Actual US$ Total Indexed US$ Average Indexed US$1980 10 52,794,417 5,279,442 78,625,682 7,862,5681981 17 137,635,057 8,096,180 180,269,485 10,604,0871982 23 123,153,630 5,354,506 152,569,306 6,633,4481983 14 165,679,748 11,834,268 203,310,479 14,522,1771984 13 112,443,460 8,649,497 135,545,417 10,426,5711985 16 79,910,186 4,994,387 95,558,138 5,972,2841986 31 106,494,075 3,435,293 130,107,397 4,197,0131987 10 46,152,097 4,615,210 55,445,231 5,544,5231988 27 118,280,130 4,380,746 134,338,600 4,975,5041989 46 199,807,239 4,343,636 218,697,287 4,754,2891990 21 62,739,862 2,987,612 68,248,899 3,249,948Total 228 1,205,089,901 5,285,482 1,452,715,921 6,371,561

Search Criteria: Year = 1980-1990; Land/Offshore = Offshore; CAR/OP = CAR



Report Examples – continued

Analysis by YearYear Incidents Total Actual US$ Average Actual US$ Total Indexed US$ Average Indexed US$1980 59 625,022,993 10,593,610 930,834,396 15,776,5841981 32 253,759,917 7,929,997 332,365,683 10,746,7211982 52 451,086,025 8,674,731 558,829,502 10,746,7211983 55 500,564,395 9,101,171 614,257,254 11,168,3141984 36 630,076,109 17,502,114 759,527,755 21,097,9931985 68 817,002,988 12,014,750 976,987,895 14,367,4691986 46 395,630,122 8,600,655 483,354,640 10,507,7101987 50 715,529,416 14,310,588 859,607,606 17,192,1521988 77 2,459,202,423 31,937,694 2,793,079,540 36,273,7601989 66 1,575,896,131 23,877,214 1,724,883,497 26,134,5981990 72 356,048,475 4,945,118 387,312,239 5,379,337Total 613 8,779,818,994 14,322,706 10,421,040,007 17,000,065

Search Criteria: Year = 1980-1990; Land/Offshore = Offshore; CAR/OP = OP

Analysis by CauseYear Incidents Total Actual US$ Average Actual US$ Total Indexed US$ Average Indexed US$(unknown) 119 649,551,041 5,458,412 787,345,301 6,616,347Anchor/jacking/trawl 23 62,995,990 2,738,956 73,968,201 3,216,009Blowout 194 3,511,808,957 18,102,108 4,232,337,494 21,816,173Collision 29 274,727,668 9,473,368 314,890,082 10,858,279Design/workmanship 39 195,984,724 5,025,249 230,964,999 5,922,179Fire/lightning/explosion 55 2,412,431,026 43,862,382 2,750,183,686 50,003,340Grounding 3 112,695,000 37,565,000 123,514,271 41,171,424Heavy weather 52 700,727,399 13,475,527 844,364,720 16,237,783Ice/snow/freeze 3 3,584,279 1,194,760 4,227,054 1,409,018Impact 15 126,589,897 8,439,326 142,879,339 9,525,289Leg punch through 12 66,109,750 5,509,146 80,090,652 6,674,221Mechanical Failure 20 201,352,779 10,067,639 261,884,319 13,094,216Misc 1 2,470,000 2,470,000 3,678,522Pipelaying/trenching 3 9,141,818 3,047,273 10,726,674 3,575,558Stuck drill stem 9 14,229,557 1,581,062 16,320,424 1,813,380Windstorm 36 435,419,109 12,094,975 543,664,269 15,101,785Total 613 8,779,818,994 14,322,706 10,421,040,007 17,000,065

Analysis by Cost CategoryCost Category Incidents Total US$A.$1 – 2.5M 220 371,734,493B.$2.5 – 5M 138 485,037,873C.$5 – 10M 100 704,835,244D.$10 – 15M 40 500,383,405E.$15 – 20M 23 403,500,962F.$20 – 25M 20 452,334,482G.$25 – 30M 12 321,522,442H.$30 – 35M 7 222,047,646I.$35 – 40M 8 297,745,283J.$40 – 45M 4 174,064,387K.$45 – 50M 5 236,953,425L.$50 – 60M 3 161,415,140M.$60 – 70M 9 579,315,292N.$70 – 80M 5 376,417,898O.$80 – 90M 1 83,510,524P.$90 – 100M 3 287,012,575Q.$100M + 15 4,763,208,938



Year Type Sub Category Cause Land/Offshore OP/CAR Location Country Total Actual US$1988 Platform Fire/lightning/explosion Offshore OP North Sea UK 1,480,000,0001989 Platform Fire/lightning/explosion Offshore OP Gulf of Mexico USA 520,000,0001988 Platform Blowout Offshore OP Campos Basin Brazil 325,000,0001989 Well Blowout Offshore OP North Sea Norway 255,000,0001987 Well Blowout Offshore OP Alaska USA 210,711,0001984 Rig Semi sub Blowout Offshore OP Nova Scotia Canada 206,300,0001987 Platform Blowout Offshore OP Gulf of Mexico USA 200,000,0001984 Well Semi sub Blowout Offshore OP Nova Scotia Canada 187,250,0001989 Platform Collision Offshore OP Gulf of Suez Egypt 127,500,0001983 Rig Drillship Windstorm Offshore OP Hainan Island China 125,000,0001988 FSU Heavy weather Offshore OP North Sea UK 122,500,0001989 Vessel Grounding Offshore OP Alaska USA 110,000,0001988 Rig Jackup Heavy weather Offshore OP Mid Atlantic USA 95,000,0001981 Rig (unknown) Blowout Offshore OP Unknown Angola 93,575,0001982 Rig Semi sub Heavy weather Offshore OP Newfoundland Canada 92,124,0001985 Well Blowout Offshore OP Gulf of Mexico USA 82,731,0431982 Rig Jackup Blowout Offshore OP Maharashtra India 67,409,5231980 Rig Jackup Blowout Offshore OP Gulf of Mexico USA 63,890,0001988 Rig Semi sub Blowout Offshore OP North Sea UK 63,577,0001984 Well Blowout Offshore OP Unknown Indonesia 63,176,0001986 Rig (unknown) Blowout Offshore OP Bay of Campeche Mexico 62,654,7741980 Rig Semi sub Mechanical failure Offshore OP North Sea Norway 62,400,0001989 Rig Jackup Blowout Offshore OP Java Sea Indonesia 60,200,0001985 Rig Semi sub Fire/lightning/explosion Offshore OP Gulf of Mexico USA 60,000,0001985 Well Blowout Offshore OP Gulf of Mexico USA 58,500,0001985 Well Blowout Offshore OP Gulf of Mexico USA 56,140,0001985 SBM (unknown) Offshore OP North Sea UK 54,901,2081980 Rig Semi sub Blowout Offshore OP Unknown Nigeria 53,554,0001985 Rig Semi sub Blowout Offshore OP North Sea Norway 51,458,730

Top Thirty Offshore Operating Losses, 1980 to 1990

Report Examples – continued


Energy Loss DatabaseWillis Limited

One Camomile StreetLondon EC3A 7LATelephone: +44 (0)20 7488 8111Direct fax: +44 (0)20 7975 2402

Website: www.willis.com

A Lloyd’s Broker and Member of the General Insurance StandardsCouncil Registered Office: Ten Trinity Square, London EC3P 3AX

Registered Number: 181116 England & WalesGLM/2155/08/04


Willis is over 14,500professionals in300 offices aroundthe world, allworking togethertowards one goal:helping ourclients succeed.

Designed by the Willis, Global Design Centre and printed by the Astron Group.


Willis Limited Energy Loss Database - Global Insurance Broker - Willis

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Transcript of Willis Limited Energy Loss Database - Global Insurance Broker - Willis