THE WILLIS ENERGY LOSS DATABASE 2011
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THE WILLIS ENERGY LOSS DATABASE 2011. OVERVIEW. Background Property included Database information Purpose of database Types of reports available Information sources Confidentiality Subscriptions & Subscribers Disclaimer. BACKGROUND.

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Presentation Transcript

Overview
OVERVIEW

  • Background

  • Property included

  • Database information

  • Purpose of database

  • Types of reports available

  • Information sources

  • Confidentiality

  • Subscriptions & Subscribers

  • Disclaimer


Background
BACKGROUND

  • Idea conceived in 1994, commercially available from 1997

  • Created in recognition of general lack of industry information

  • Marine and Aviation losses are well reported but not Energy unless they are major and/or involve death or injury

  • This is a unique facility


Property included
PROPERTY INCLUDED

  • Offshore/Onshore – E&P Upstream

  • - Rigs/FPSOs/FSOs/FPUs etc

  • - Platforms

  • - Pipelines

  • - Oil sands

  • - Storage & offloading systems

  • Onshore – Midstream/Downstream

  • - Refineries, petrochemical plants etc.

  • - Loading terminals, tank farms

  • - Power Stations, wind farms

  • - Gas plants, transmission stations


Database information
DATABASE INFORMATION

  • Only for losses of US$1,000,000 or more at time of loss

  • Information captured is from 1972 to date

  • All amounts shown in US$ exchanged at date of loss rate of exchange

  • Property related losses – no liability in isolation

  • Amounts relate to PD, OEE (cost of control etc.) and BI

  • Contains 9,000 individual records with an aggregate time of loss value greater than US$148 billion (>US$198 billion indexed)

  • Except for BI this is a loss database not an insurance database therefore PD, OEE & S&P costs are for 100% interest FGU on the basis of no deductible and no limit – the incident does not have to have been insured but it does have to have been insurable


Purpose of database
PURPOSE OF DATABASE

  • To assist in the evaluation and review of current and future insurance strategies – both buying and selling, direct and reinsurance

  • To help understand the dynamics between losses and pricing

  • To provide activity profiles and market share analyses for contributing Loss Adjusters

  • Subscribed to by oil companies, insurers/reinsurers and major brokers

  • Used by academic establishments – forms part of the “Energy Insurance and Risk Management” course run by the Bauer College of Business at the University of Houston



Reports available
REPORTS AVAILABLE

  • Summary: No. of incidents, aggregate & average $

  • - by year

  • - by geographical area, country or location

  • - by cause

  • - by property type

  • - by month (seasonal trends)

  • - by cost bandwidths

  • - by well depth

  • - any combination of the above

  • Listings of individual losses by date or value


Report example 1
REPORT EXAMPLE 1:

An independent oil company operating only onshore USA wishes to review their current OEE limits of $5M. What can the database tell them about the adequacy of their OEE limit in light of industry experience?

Database search criteria: Country = USA, Land/Offshore = Land, Loss Type = OEE


To download into

Excel just click here

We will now look at 2 other reports with the same data set – firstly by location


To download into

Excel just click here

And secondly by cost category (using indexed as we are looking at + 30 years of data)


  • This tells us:

  • An OEE limit of $5M would have been adequate for 467/711 or 66% of known OEE losses excess of $1M

  • Increasing the OEE limit to $10M would account for 605/711 or 85% and so on…


Report example 2
REPORT EXAMPLE 2:

Analysis of European refinery losses since 1990 based on frequency and severity excluding the causes of earthquake and subsidence

Database search criteria: Year of Loss = 1990 to 2010, Area = Europe, Subcategory = Refinery, Cause = all (excluding earthquake and subsidence/landslide)






Report example 3
REPORT EXAMPLE 3:

A comparison of offshore pipeline losses in both the construction and operating phases in four different areas of the world.

As this coverage is usually purchased on a limit rather than value basis, what is the industry experience of loss severity?


OFFSHORE PIPELINE LOSSES BY CLAIM AMOUNT

This shows where 90% of the losses reside


Information sources
INFORMATION SOURCES:

  • Willis records

  • Willis dedicated research team located in Mumbai

  • Loss Adjusters

  • Insurers & Captives

  • Historical data (London Master Energy Line Slip)

  • The press (limited information available)


Confidentiality
CONFIDENTIALITY:

  • Guarantees have been given to information providers that only restricted information will be produced which means that:

    • Names of Assureds are not revealed

    • Names of contributors are not revealed

    • Obvious information to aid identification such as name of facility or precise location are not revealed

  • Access to the database is strictly controlled


Subscriptions
SUBSCRIPTIONS:

  • Price (on application) is for a multi-user annual licence for access via the internet. No additional software is required

  • Subscriptions go towards maintaining and developing the database

  • Without sufficient income the facility will be discontinued – it should be regarded as an energy insurance industry tool

  • Subscribed to by oil companies, direct and reinsurance underwriters and major brokers


Just added
JUST ADDED:

  • Additional fields showing

    • Gulf of Mexico Area

    • US Location Code (OEE only)

    • Upstream, downstream or power

    • Subcategory 2 (lower level description of property)

  • The ability to generate and download custom reports based on up to 12 fields of your choice


Disclaimer
DISCLAIMER:

The entries in the database have been obtained from a variety of sources.

Willis Limited does not accept any responsibility for the accuracy or completeness of the information contained therein.


THE WILLIS ENERGY LOSS DATABASE 2011

http://online1.willis.com/sites/weld/W_ELViewer.aspx


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