Energy Insurance in Iraq
Marsh’s Energy Insurance Brokers and Risk Advisers Marsh, the world’s leading insurance broker and risk adviser, provides advice and transactional capabilities to clients in over 100 countries. Marsh is a unit of Marsh & McLennan Companies (MMC), a global professional services firm with an annual revenue exceeding $11 billion. MMC is the parent company of Guy Carpenter, the risk and reinsurance specialist; Mercer, the provider of HR and related financial advice and services; and Oliver Wyman, the management consultancy. Marsh’s Energy Practice is at the forefront of advising energy companies on risk and insurance issues impacting operational success.
Primarily organised around two speciality product lines - upstream and downstream energy - we offer a deep understanding of industry issues within these segments. Our wealth of expert placement knowledge is augmented by our market leading risk engineering, project risk management, and claims advisory services. Our network of over 400 energy specialists is globally coordinated from ten strategic hubs: Houston, New York, San Francisco, Calgary, London, Oslo, Madrid, Dubai, Perth and Singapore. Operating as a single global organisation, our energy experts can offer market leading global risk solutions while being able to remain close to our clients’ operations.
These solutions come from our access to, and relationships with, insurance markets globally. We place over USD1.5 billion in live insurance premiums into these energy markets, on behalf of almost 1,000 clients. Putting high performance claims services at the centre of our service offering has seen our number of new clients soar in 2009 and 2010. In addition to our leading status as energy insurance brokers Marsh is uniquely qualified to respond to the risk management needs of our clients.
Introducing Anglo Arab Insurance Brokers (AAIB) AAIB is a pioneer in the Iraq insurance market. Since it was founded in 2005, the company has continually strengthened its presence in Iraq with the opening of offices in Baghdad, Erbil and Basra. Today, AAIB is the only international insurance broker which has offices across Iraq and is fully licensed and registered to operate in the country. AAIB’s primary focus is on the war and terrorism market, providing expert advice on political risk and risk mitigation. AAIB’s deep experience and knowledge of Iraq has enabled it to develop cutting edge and often unique insurance products which can be tailored to provide enhanced options and flexibility. As an Iraqi registered and licensed broker, AAIB can also arrange for policies to be fronted locally, ensuring full compliance under Iraqi Law.
AAIB’s extensive Iraq insurance product range includes specialist policies such as construction projects, aviation, cash in transit, political risk insurance and motor schemes. The advisory skills and response service provided under AAIB’s Kidnap and Ransom cover are delivered exclusively by the most experienced response consultants for Iraq. Most recently AAIB has introduced an online travel insurance facility providing instant, comprehensive cover for individuals travelling from anywhere in the world to Iraq and Afghanistan. Using its local knowledge and expertise, AAIB has developed region specific insurance facilities in the international insurance and reinsurance markets for companies operating inside Iraq. In particular, it has developed liability, personal accident, medical
insurance and cargo facilities which are now provided to many major multinational companies operating in Iraq. AAIB’s knowledge of Iraq has also led it to develop a comprehensive Risk Management Gap Analysis package. Produced specifically to help companies looking to enter the Iraq market, it provides extensive and invaluable intelligence and insight into Iraq’s political, cultural and legislative landscape.
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The Relationship Between Marsh and AAIB Marsh’s Energy Practice and AAIB have entered into a mutually exclusive correspondent agreement. Marsh’s international energy expertise combined with the broad range of pertinent insurance facilities that AAIB can provide in Iraq, create a unique offering in this rapidly expanding market. Together, Marsh and AAIB provide local knowledge and reputation with the experience and resources of a global organisation, enabling you to minimise the risk to your significant long term investments in Iraq. Our combined resources provide unique products and services that are in full compliance with Iraqi laws.
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These two companies working together will allow essential and compliant access to local insurance markets and regulatory authorities, will assist in premium and claims accounting issues, and ensure the ease of transit/ engagement for experts such as risk engineers and loss adjusters. A comprehensive understanding of the regulatory and operational environment in Iraq is a prerequisite for effective programme design. Failure to properly recognise or comply with relevant regulations may render insurance investments inadequate or inoperable, and may conceivably attract negative attention from the authorities in a wider business context. Marsh and AAIB are able
to provide informed advice on existing insurance regulation and, importantly, ongoing insight into future developments in this highly fluid environment. In the event of a claim, Marsh and AAIB will help facilitate the interface with any necessary regulatory bodies and access to loss adjusters and other experts. Our leading claims professionals based in the Middle East, Canada and the US will ensure the maximum possible return on your policy investment.
Alfaevac Alfaevac was established in 2007 by two AAIB directors who, as a result of their accident and health insurance experience in Iraq, recognised the need for a third party assistance company dedicated to high risk locations that would set new standards in the evacuation industry. Alfaevac, whose core services rest in medical and political evacuation, is now in its third year of operation. Its unique, IT led, 24/7, western controlled operations centre represents a revolution in the industry. The strength of the Alfaevac model is in its flexibility. By coordinating all available assets, rather than a fixed few, Alfaevac has dramatically cut evacuation times.
Political Evacuation A unique four part solution: Watch, inform, alert and evacuate. Alfaevac has the capacity to track clients, inform them of developing local security situations and react immediately to any evacuation requirement through their own enabled cell phone.
Medical Evacuation From point of injury through to repatriation plus four months in your home country, Alfaevac coordinates all air and ground assets, medical care, visas, international travel as well as diplomatic, employer and family issues. The cover can be extended to include Defence Base Act/ sickness only; in-field medical services; as well as medical and safety audits.
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Other Services Available from Marsh Risk Engineering Support Marsh’s well known and respected Energy Risk Engineering Practice produces underwriting surveys (risk engineering surveys) which provide significant value to clients and play a fundamental role in the overall risk management process. They provide a sound technical basis for risk identification, assessment of exposures and subsequent informed decision-making regarding risk retention and risk transfer strategies. Training Marsh runs a number of formal risk management and insurance training courses. In addition, we can provide bespoke risk and insurance training from qualified insurance specialists and risk engineers. Environmental Advice Given the recent oil spill in the Gulf of Mexico, clients may have concerns about minimising environmental impacts of your exploration and production (E&P) activities. Marsh’s Global Environmental Practice can offer advice on prevention and risktransfer solutions. Loss Prevention Best Practice We maintain a large database of historical loss information which, combined with complementary advice from our team of risk engineers, can help clients establish first class loss prevention and mitigation strategies. Third Party Estimated Maximum Loss (EML) Studies The history of offshore E&P is littered with events that have given rise to third party claims and litigation. Our team can help clients establish robust EML figures to ensure that these are adequately catered for in your insurance and risk management programme.
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Crisis Management Audits and Business Continuity Management Adequate planning for major losses must extend beyond the placement of an appropriate insurance programme. The ability of an organisation to respond effectively to the multitude of technical challenges arising from a loss is a paramount consideration since the speed and adequacy of response is directly linked to overall business performance. At the same time, major events attract huge industry, governmental and media interest, and effective crisis management can play a major role in restoring trust and confidence in all critical stakeholders. Business Interruption Modelling Once production from oilfields is underway and as the producing asset portfolio matures, special consideration should be given to identifying production ‘bottlenecks’ and any other business interruption scenarios that might negatively impact client’s results. Marsh is a world leader in helping clients identify potential vulnerabilities and related insurance solutions. Cost of Risk/Retention Analysis Marsh can provide various analyses of company financial information, industry loss data and policy deductible options to generate recommendations for an optimum risk retention strategy. This work will help establish the risk tolerance and risk appetite of clients to ensure that these measures are fully recognised within the design of your insurance programme. Captive Insurance Company Strategy A captive (i.e. wholly owned) insurance company can play a key role in the development of a long term insurance and risk management strategy. We can work with clients to identify if the establishment of a captive is likely to add value in the medium to long term, taking into account a variety of domicile, taxation and risk capital/premium flow considerations.
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For more information, please contact: Marsh
AAIB
Alfaevac
London Simon Boxall simon.boxall@marsh.com +44 20 7357 2908
Amman William Wakeham william.wakeham@aaib-insurance.com +962 7973 22299
Khaled Aiesh Operations Manager khaled.darweesh@alfaevac.com
Claire Hodgson claire.l.hodgson@marsh.com +44 20 7357 3706
Baghdad Peter Worby peter.worby@aaib-insurance.com +964 7814 100774
Angus Rodger angus.rodger@marsh.com +44 20 7357 3488 Dubai Ian Henderson ian.henderson@marsh.com +971 2 672-2664 William Pembroke william.pembroke@marsh.com +971 4212 9336
24/7 Alarm Centre: +962 6 550 3220 +962 797 223 311
Basra / UAE Michael Carr michael.carr@aaib-insurance.com +964 7802 042178 Erbil Christine Schofield admin@aaib-insurance.com +964 750 416 2924
Houston Laurence Laveissière laurence.laveissiere@marsh.com +713 276 8543
The information contained herein is based on sources we believe reliable and should be understood to be general risk management and insurance information only. The information is not intended to be taken as advice with respect to any individual situation and cannot be relied upon as such. In the United Kingdom, Marsh Ltd. is authorised and regulated by the Financial Services Authority for insurance mediation activities only. Š Copyright 2010 Marsh Ltd
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