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K.M. Dastur Reinsurance Brokers Pvt.Ltd
The only Insurance Brokers in India to be ISO 9001/2000 certified BY TUV Germany
K.M. Dastur Reinsurance Brokers Pvt.Ltd, Cambata Building, 5th Floor, 42,Jamsetji Tata Road, Churchgate, Mumbai 400020
COUNTRY REVIEW -
INDIA
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KMD
INDIA – A SNAPSHOT
� Sovereign Democratic Republic
� 29 states
� 22 scheduled Languages / 2000 listed Dialects
� World’s Seventh Largest country - area wise
� World’s Second largest Population (count: 1.237
Billion) – 51 Birth a minute
� Young Population – 50% of Population below 25
year
� Birthplace of several Religion
� GDP Growth : Current 4.2%
Highest 9.2% (2006-2007)
� A major Economic Power in terms of Purchasing Power Parity.
� Energy Deficit Country
KMD
OIL - STATISTICS
TABLE – 1
CountryOil
Consumption
Oil
Production
%
Production /
Consumption
Oil Proven
Reserve
USA 18,555 8,905 48 35
CHINA 10,221 4,155 41 17.3
JAPAN 4,714 Negligible Nil Negligible
INDIA 3,652 894 24 5.7
MALAYSIA 697 657 94 3.7
INDONESIA 1,565 918 59 3.7
THAILAND 1,212 440 36 0.4
(Source: BP – Statistical Review of World Energy 2013)
2012
‘000’ Million Barrels
2012
000’s Barrels Daily
2012
000’s Barrels Daily
KMD
GAS - STATISTICS
TABLE – 2
CountryGas
Consumption
Gas
Production
%
Production /
Consumption
Proven Reserve
USA 69.7 65.7 94 300
RUSSIA 40.2 57.1 142 1162.5
CHINA 13.9 10.3 74 109.3
JAPAN 11.3 - - -
INDIA 5.3 3.9 74 47
INDONESIA 3.5 6.9 197 103.3
MALAYSIA 3.2 6.3 197 46.8
THAILAND 4.9 4.0 82 10.1
(Source: BP - Statistical Review of World Energy 2013)
2012 – Billion Cubic Feet (Trillion Cubic Feet)
KMD
Physical Map of India
ONGC
Bombay High
Onshore Assam /
North East
(Producing)
Damodar Basin
(Exploratory)
Mahanadi Basin
(Exploratory)
KG Basin
• Producing
• Developing
• Exploratory
Cauvery Basin
• Producing
• Developing
• Exploratory
Gulf of Cambay
Basin
CAIRN ENERGY
(Producing)
Gulf of Kutch
SBM
KMD
Insurance Market
� Total number of Non Life Insurance Companies
� Public Sector : 4
� Private Sector : 23
� One Reinsurance Company – GIC Re
� Public Sector companies active in Oil and Energy Insurance. Only certain
Private Sector Companies are active in Oil and Energy.
� Insurance capacity ramped up from 2004.
KMD
Insurance Markets (contd.)
But GIC capacity on following risk:-
ONGC : USD 150 Million
RIL : USD 150 Million
GSPC : USD 75 Million
ABAN : USD 75 Million
Market Capacity(Million)
2.5
27.5 27.532.5
32.5
47.5
62.5
102.5 102.5
117.5
0
15
30
45
60
75
90
105
120
135
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Market
KMD
Insurance Market (contd.)
GIC
� Net worth : USD 1.77 Billion
� Assets : USD 11.04 Billion
� Premium : USD 34 Million (Oil and Gas)
� Fac Capacity : USD 20 Million (Foreign)
USD 50 Million ( Domestic)
� Security : A- (AM Best)
New India
� Net worth : USD 1.28 Billion
� Assets : USD 5.25 Billion
� Premium : USD 25 Million (Oil and Gas)
� Fac Capacity : USD 40 Million (Foreign)
USD 40 Million (Domestic)
� Security : A- (AM Best)
New India
GIC
KMD
Insurance Market (contd.)
� United India writing ONGC Package for nearly 30 years now.
� National / ICICI have capacity of USD 10 Million.
� All Treaties led by Hannover Re except ICICI led by XL Re.
� Other Insurers also looking to avail Treaty Facility.
� Major Reinsurers
Operation
• ACE
• AIG
• Zurich
• Lloyds
• GIC
• Trust Re
Construction
• Lloyds
• GIC
• Trust Re
KMD
Insurance Market (contd.)
Current Annual Premium - Upstream Estimated at USD 175 Million
Operation
(incl. COW),
$135 Million
Rigs, $25 Million
Construction,
$15 Million
Operation (incl COW)
Rigs
Construction
KMD
Energy Large Losses for last 5 years
Underwriting
Year
Policy Nature of Loss 100% loss
(Mn)
2008-09 Offshore Construction Jacket sinking 25.30
2009-10 Offshore Construction Toppling and Damage to
Tripod Jacket
20.00
2009-10 Offshore Package Well Blowout 65.5
2010-11 Offshore Package Damage to SBM Mooring
Hose
21.0
2010-11 Offshore Rig Rig sinking 235.0
2010-11 Pipe pull incident Loss of Buoyancy tanks 30.5
2012-13 Offshore Package Uncontrolled flow of Gas from
Well
115.00
2013-14 Onshore Package SBM sinking 20.00
KMD
Oil and Gas Insurance
� Indian Oil Companies looking to buy
Assets Overseas (Mozambique / Brazil).
ONGC Videsh Ltd (OVL) major buyer of
Assets worldwide. Investment (nearly
USD 10 Billion) in the field.
� ONGC conversion of Rigs to MOPU
(Three conversions underway – more
expected)
� Looking to develop Deep Water
Technology.
� East Coast – growth dependent on
progress in Technology / Price of Gas.
Trend
KMD
Oil and Gas Insurance....contd.
� Construction : ECV USD 1 Billion
annually
� 5 Rigs under Construction in yards in
India.
� Market expected to grow by 10% -
15% mainly due to increase in
construction activities.
KMD
Shale Gas
� India embarking on Shale Gas
Exploration
� Environmental issues
� ONGC / Oil India only permitted now for
Exploration
KMD
Save The Tiger
KMD
Save The Tiger
KMD
Thank You
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