1. THE WILLIS ENERGY LOSS DATABASE 2011

2. OVERVIEW Background Property included Database information
Purpose of database
Types of reports available
Information sources
Confidentiality
Subscriptions & Subscribers
Disclaimer

3. 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

4. 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

5. 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

6. 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

7. SOME OF OUR SUBSCRIBERS…

8. 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

9. 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

12. To download into
Excel just click here
We will now look at 2 other reports with the same data set – firstly by location

13. To download into
Excel just click here
And secondly by cost category (using indexed as we are looking at + 30 years of data)

14. 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…

15. 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)

16. Frequency

17. Severity

18. Cause

19. List by value

20. 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?

21. This shows where 90% of the losses reside
OFFSHORE PIPELINE LOSSES BY CLAIM AMOUNT
This shows where 90% of the losses reside

22. 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)

23. 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

24. 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

25. 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

29. 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.

30. THE WILLIS ENERGY LOSS DATABASE 2011 1