1 / 16

Karachi Insurance Institute: Risk Management Workshop, Karachi

Tuesday 26 th January, 2010. Karachi Insurance Institute: Risk Management Workshop, Karachi. Bruce Garrett, Managing Director, Marsh Ltd Energy Practice, London. Agenda. Introduction of Marsh speakers Where are we in 2010: Power project risks Power operating risks

Download Presentation

Karachi Insurance Institute: Risk Management Workshop, Karachi

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Tuesday 26th January, 2010 Karachi Insurance Institute: Risk Management Workshop, Karachi Bruce Garrett, Managing Director, Marsh Ltd Energy Practice, London

  2. Agenda Introduction of Marsh speakers Where are we in 2010: • Power project risks • Power operating risks • Major infrastructure risks • Energy project risks • Energy operating risks 1 2

  3. Construction, Power & Utilities Practice Power Project Experience United Kingdom Rugeley FGD Lockerbie Biomass Seabank Power $618m Thames Power $165m Humber Phase I and II $544m South Coast Power $216m Grangemouth CHP $85m Didcot B $220m Brigg Power Shotton CHP West Burton FDG Winnington CHP Michelin CHP Port of Liverpool CHP Kelmsley II FBC Hickson & Welch CHP Sizewell B Nuclear Power Station Torness Nuclear Power Station Dungeness Nuclear Power Station (N.B. Nuclear projects in blue print) North America Comanche Highbridge Riverside Bruce Power, Nuclear Pt Lepreau, Nuclear Roxboro FGD Nelson Energy Kendall Combined Cycle Lawrenceburgh Energy Jackson Combined Cycle Covert Waterford Energy Mystic Station Redevelopment Fore River Meriden Project Hay Road Martin Expansion Project Ghila River El Dorado Pike County Project Southhaven Green County Energy Ouachita Brazas Valley Energy Redhawk Harquahala Blythe Elk Hills Duke Energy, Cliffside PepCo Holdings Duke Energy – Edwardsport Suez Astoria National Grid Upgrade Flour – Brazos Electric Europe Rosen SpA - Italy, API Energia, Italy Turbogas - Portugal, Entek Bursa, Turkey Marmara Ereglisi - Turkey, Csepel II, Hungary Ankara CCGT - Turkey, Vertes Power, Hungary BC Euromu CHP, Hungary TVO – OL3 Nuclear Station Finland Cernavoda Unit 2 Nuclear, Romania Tejo Energia, Portugal $720m Gas Natural, Spain, Malaga Gaz de France $400m Mochove 3&4, Slovakia Pakistan UCH Power Saba Power Kot Addu Ireland Edenderry Power $70m Dublin Bay Power $270m Coolkeeragh $160m Bord Gais $640m China Luannan Zhenjiang Shuzhou Daya Bay 1&2, GuangDong Ling Ao Nuclear, China South East Asia Thai Oil, Thailand Rayong Electric, Thailand Industrial Power, Thailand Khanom Electric, Thailand Gulf Co-Gen, Thailand Thai National Power, Thailand KEGCO, Thailand Genting Sanyen Power, Malaysia Automan Power, Malaysia Paiton 5 and 6, Indonesia Coco Phase 3, Thailand Ilijan, Philippines Kobe Steel, Japan Paiton 7 and 8, Indonesia Bugok Project, Korea Wolsong, Nuclear Central & South America Interandes CCGT, Argentina/ Chile Cana Brava, Brazil Uruguaiana, Argentina/ Brazil Macae Power, Brazil Seneca, Venezuela Pedregal Power, Panama Tamuin I, Mexico Tamuin II, Mexico Mexicali, Mexico Andres Power, Dominican Republic San Pedro de Macoris, Dominican Republic PQU II, Brazil Angamos AES Chile Kallpa III Middle East Al Taweelah 2, UAE $1.5 billion Al Taweelah 1, UAE United Power, Oman Al Kamil, Oman Shuweihat, UAE $2 billion Taweelah B, UAE Ras Laffan B, Qatar $2 billion Rabigh, Saudi Arabia Fujairah F2, UAE Mesaieed A, Qatar $1.7 billion Fujairah F1, UAE $2.2bn Australia Callide “C” Power Pelican Point Swanbank “E” Truenergy Africa Jorf Lasfar, Morocco Belle Vue, Mauritius Rades, Tunisia Takoradi, Ghana Tageta Project, Tanzania Hadjeret Ennous, Algeria $900m Indian Region Upper Bhoti Koshi Power Project, Nepal Venkatesh Coke and Power, India Kelanitissa, Sri Lanka

  4. The International Reinsurance MarketsPower Project Risks • A buyer’s market! • Capacity @ USD 1.5billion; new markets entering the fray • Rating levels- lowest level for a decade • Deductible and wordings: relatively stable • Most power projects so far on LEG/2 basis but………. • Technology: still a key area of interest for specialist underwriters • Some new technology may be about to emerge • So how do clients achieve the best results?

  5. Mochove Slovakia Power Specific UK Experience 2008 – 2009 Palo Viejo 120MW Estreito 1050MW San Pedro 120MW Angamos 464MW Cliffside 800MW Duke 630MW Chilca III 186MW Brazos 620MW Navoi 400MW Stratford 100MW Whitegate 328MW Fujairah 200MW Astoria 575MW Delta 328MW Buck 620MW Mesaieed 2000MW Pego 416MW Takoradi 180MW 3 Sites 380MW AECL Retube

  6. Steps to SuccessPower Projects • Warranties: Be sure about the extent of cover afforded, and that which is not protected • Provide detailed project value breakdown data • Project Bar Chart: minimum level 2 please! • Testing and Commissioning: Explain in detail • Partial operations/handover: Be clear from the start • Do not skimp on information; • Use colour and always seek to differentiate

  7. Major Infrastructure Projects • Tunnels: major area of focus • Contractor compliance with International Tunnelling Code of Practice • Marsh: we have our very own “Mr Mole” • Caveat Emptor: Price should not blind any client – significant wording differences abound

  8. Marsh’s Tunnelling Credentials

  9. Construction Markets • London / Europe: best for “mega” projects • Middle East: growing; hungry and close in culture and time • Singapore: cultural synergy; competitive and capacity abounds As buyers / insurers we encourage you to seek alternative market views.

  10. Power Operating Risks2010 • Market closer to losses than some sectors = lower deductibles • Loss statistics = more attritional losses • But few Nat Cat losses • Capacity abounds; competition is fierce • Softer market seems likely • Capacity: circa $ 3 billion

  11. To buyers of Power Risk Transfer Protection • Quality information is “King” • Sell your risks; differentiate your risks; communicate powerfully and clearly • Leave adequate time for marketing negotiations • New entrants are coming to the market • Intra market and regional competition exists – not to be ignored

  12. Energy Market Update 2010 • Exceptional results in 2009, after very poor result in 08 • Pricing stable in first half but reductions available from Q4 • Capacity at its highest since 2001 • Willingness of leaders to compete • Softening trend to accelerate during 2010

  13. Energy Market Update 2010 • Onshore Property – Most competitive segment –10 potential leaders – Capacity increasing – Few significant losses in 2009 – Market still disciplined on coverage & deductibles • Offshore Property – Some significant losses in 2009 but no hurricane losses – Hurricane premium represents 30-40% of market premium – More competition outside of Lloyd’s Most underwriters looking for GROWTH IN 2010

  14. Contact Details

  15. Thank you

  16. www.marsh.com

More Related