1. Tony Dempster Herbert Smith LLP, Partner Claims Management

2. Introduction EEWG: challenges presented by the new ELD regime Purpose: Enhance development of claims expertise needed to cope with challenges that ELD claims present Initiate discussions with competent authorities to develop plans for co-operation: insurers will expect degree of control and influence in decision making process on remediation if expected to pay costs Assist generally with the development of insurance products to provide effective cover for operators’ responsibilites under ELD

3. Claims Management CEA Paper on Enhancing Sustainable Insurance Solutions : Claims Management (Section 5) New claims management skills likely to be required: Insurers wealth of experience in handling claims, including highly complex and technical claims Involved at a very early stage taking control of claims under existing civil liability regimes covering ‘traditional damage’ Insurance industry less experience of the process under the rules of public/administrative law ELD also introduces new liabilities and remedial measures of which key stakeholders involved (including the insurance industry) have very little experience Insurers need to develop new expertise in handling claims associated with those liabilities

4. Claims Management Matters to be considered: Development of best practices for handling claims: benefit of environment but without excessive cost What techniques exist to restore environmental damage in the most effective and cost efficient manner? Exercise by insurers of control of claims: development of effective working relationships with competent authorities

5. Claims Management Call for close co-operation with the competent authority Competent authority will either approve preventative or remedial action by responsible operator or require responsible operator to take necessary preventative or remedial measures Insurers significant interest and wish to be involved in this decision process

6. Claims Management Development of effective working relationships with the competent authorities to ensure insurers able to manage business properly and competent authorities comply with their responsibilities More important in cases of cross-boarder damage involving more than one competent authority

7. Claims Management Claims handling : questionnaire for steps to be taken Claims handling determined by scope and limits of insurance policy: Scope of cover vs. liability of insured operator Types of remediation covered Limits/sub-limits including legal costs Notification requirements on insured operator under policy

8. Claims Management Questionnaire: assessment of environmental damage and appropriate steps (Annex 7.4) Underwriting assessment: useful data for claims management : Business/activities of insured Environment of the insured sites Emergency plans

9. Claims Management Environmental damage/imminent threat Type of activity : occupational/non-occupational Causal link Fault/negligence Third party? Initial assessment of environmental damage Identification of applicable laws and competent authorities

10. Claims Management What is possible by way of remediation? Status report on measures initiated Specialists Gathering of relevant loss information Determination of environmental damage Assessment of significance of adverse effects/risk to human health Establishment of baseline condition Identification and choice of remedial options Monitor outcome of preventative and remedial measures

11. Claims Management Future developments Close collaboration between underwriters and claims managers Collaboration between insurers and competent authorities to enhance development of claims experience THANK YOU FOR YOUR ATTENTION!

12. Brussels 13 February 2008 For more information www.cea.eu CEA aisbl Square de Meeûs 29 B-1000 Brussels