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Willis Limited
Energy Loss Database
One Camomile Street
London EC3A 7LA
Telephone: +44 (0)20 7488 8111
Direct fax: +44 (0)20 7975 2402
Website: www.willis.com
GLM/2155/08/04
A Lloyd’s Broker and Member of the General Insurance Standards
Council Registered Office: Ten Trinity Square, London EC3P 3AX
Registered Number: 181116 England & Wales
willis 12pp
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Willis is over 14,500
professionals in
300 offices around
the world, all
working together
towards one goal:
helping our
clients succeed.
Designed by the Willis, Global Design Centre and printed by the Astron Group.
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Database Information
Willis, the global insurance
broker, has established the most
comprehensive database of energy
losses in the world. This facility is
unique and widely used by insureds,
insurers, loss adjusters and other
brokers throughout the industry.
Willis Energy Loss Database August 2004 1
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Database Information – continued
What it provides
Type of Losses Captured
The database provides a vehicle by which insureds
and insurers can analyse current and historical loss
information and make informed decisions on insurance
strategy. Comparisons between individual and industry
experiences can be made and this has proved invaluable
to both risk management departments and energy insurers.
Our focus has been on property related losses rather than
individual death or injury claims. Difficulties in obtaining
accurate information on isolated death and injury claims
have been encountered due to non-disclosure agreements,
appeals etc. and we questioned the relevance of many of
the figures that included substantial punitive damage
awards. Third party property losses and sudden and
accidental pollution claims are included, as are death and
injury settlements that formed part of recognised figures
for major property claims (e.g. Piper Alpha).
The Database
A threshold of $1,000,000 has been imposed for losses to
qualify for the database and we now have thousands of
entries from 1972 to date.
2 Willis Energy Loss Database August 2004
In recognition of the continuing disintegration of the
traditional boundary between upstream and downstream
activities, the database captures all activities associated
with the energy insurance sector. Examples include:
platforms, pipelines, rigs, pipelay vessels, FPSOs, FSUs,
SBMs, refineries, petrochemical and chemical plants,
loading terminals, tank farms, gas transmission stations,
utilities and power stations. Oil tankers, Oil/LNG cargoes or
other interests associated with the marine sector are not
included. We also do not include those interests
considered domestic retail such as petrol stations.
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Database Information – continued
North Sea Operating Losses (ex. Piper Alpha)
US$
US$
US$
Incidents
Incidents
No. of Incidents
3030
500
500000000
25
25
400
400000000
2020
300
300000000
15
15
200
200000000
10
10
100
100000000
0
03
02
01
00
99
98
97
96
95
94
93
92
91
90
89
88
87
86
85
84
83
82
81
80
79
78
77
76
75
74
73
72
0
55
00
Years
Top Ten Platform Losses
Year
1988
1992
1989
1991
1988
1992
1987
1982
1999
1989
Description
Piper Alpha Platform, North Sea
Hurricane Andrew (Various), Gulf of Mexico
South Pass Platforms, Gulf of Mexico
Sleipner Platform, North Sea
Enchova Platform, Brazil
Goodwyn A Platform, Australia
Bourbon Platform, Gulf of Mexico
Nigg Bayjacket loss (BI), Scotland
North Nemba, Indonesia
Sidki Platform, Gulf of Suez
Total Claim US$ Million
1,480
550
520
363
325
231
200
170
160
127
Willis Energy Loss Database August 2004 3
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Database Information – continued
Breakdown of Costs
Typical Search Example
There are three categories of cost breakdown. Physical
damage/liability, operator’s extra expense and business
interruption. Wherever possible, figures are included on
the basis of cost to the assured rather than those
recoverable under any insurance policy. Therefore excluded
items, deductibles and limits are not taken into account.
Business interruption is only included if a realistic figure
is available and this is not grossed up to include other
operating parties if they have a policy of not purchasing
this type of coverage.
The search criteria requested onshore operators extra
expense losses in North America at current prices.
Information available from
the Database
Having established the specific search criteria of an
enquirer, the database will produce summary reports
based on the records found. These reports will show the
number of incidents together with aggregate and average
claim amounts, based on actual or current day figures,
broken down by:
–
–
–
–
year
geographical location
property type
individual claim cost.
4 Willis Energy Loss Database August 2004
Cost Category
$1 – 2.5m
$2.5 – 5m
$5 – 10m
$10 – 15m
$15 – 20m
$20 – 25m
$25 – 30m
$30 – 35m
$40 – 45m
$45 – 50m
$50 – 60m
$60 – 70m
Totals
No. of incidents
178
115
68
18
10
2
4
1
1
1
0
1
400
...the database
captures all activities
associated with the
energy insurance sector.
Total
Indexed OEE$
292,556,849
395,202,792
483,419,164
215,305,561
171,624,758
44,917,479
110,511,693
65,812,758
41,645,530
46,271,000
0
67,687,542
1,934,955,127
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Database Information – continued
Access to Information
The database is available to subscribers on the internet
and is updated frequently. Analytical reports can be run
directly from the on-line facility and each report includes
the subscribers’ company name in the heading. It is also
possible to download tables into spreadsheets for further
anaylsis and charting.
The database forms part of the Willis on-line facilities and
is accessed (with a password) via the Willis website at
http://www.willis.com.
Further Information and
Demonstrations
For further information about the database and/or to
arrange for a demonstration please contact:
Andrew Jackson
Global Markets
Willis Limited
One Camomile Street
London EC3A 7LA
Direct line: +44 (0)20 7488 8234
Fax: +44 (0)20 7975 2480)
e-mail: jacksona@willis.com
or your usual Willis representative.
Willis is committed
to maintaining and
developing this
database to the highest
standard achievable.
Willis Energy Loss Database August 2004 5
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Report Examples
The following pages are actual examples of reports taken from the Internet database and demonstrate a comparison of
offshore construction and offshore operating losses during the period of 1980 to 1990 broken down by:
– year
– cause
– cost category indexed to current day values.
The final example is a listing of the top 30 offshore operating losses during the same period.
Search Criteria: Year = 1980-1990; Land/Offshore = Offshore; CAR/OP = CAR
Analysis by Year
Year
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
Total
Incidents
10
17
23
14
13
16
31
10
27
46
21
228
Total Actual US$
52,794,417
137,635,057
123,153,630
165,679,748
112,443,460
79,910,186
106,494,075
46,152,097
118,280,130
199,807,239
62,739,862
1,205,089,901
Average Actual US$
5,279,442
8,096,180
5,354,506
11,834,268
8,649,497
4,994,387
3,435,293
4,615,210
4,380,746
4,343,636
2,987,612
5,285,482
Analysis by Cause
Year
(unknown)
Anchor/jacking/trawl
Design/workmanship
Fire/lightning/explosion
Heavy weather
Impact
Mechanical Failure
Piling Operations
Pipelaying/trenching
Windstorm
Total
Incidents
52
23
85
1
14
7
8
15
21
2
228
Total Actual US$
199,394,910
97,567,541
649,030,987
5,298,000
74,422,664
23,986,840
28,253,005
57,134,772
58,697,302
11,303,880
1,205,089,901
Average Actual US$
3,834,518
4,242,067
7,635,659
5,298,000
5,315,905
3,426,691
3,531,626
3,808,985
2,795,110
5,651,940
5,285,482
Analysis by Cost Category
Cost Category
Incidents
A.$1 – 2.5M
85
B.$2.5 – 5M
64
C.$5 – 10M
53
D.$10 – 15M
12
E.$15 – 20M
5
F.$20 – 25M
2
G.$25 – 30M
1
H.$30 – 35M
1
K.$45 – 50M
2
L.$50 – 60M
1
O.$80 – 90M
1
Q.$100M +
1
Total US$
152,624,797
227,297,079
358,974,991
145,218,425
84,641,266
43,956,289
28,223,975
32,613,251
95,149,771
52,465,480
89,203,595
142,347,003
6 Willis Energy Loss Database August 2004
Total Indexed US$
78,625,682
180,269,485
152,569,306
203,310,479
135,545,417
95,558,138
130,107,397
55,445,231
134,338,600
218,697,287
68,248,899
1,452,715,921
Total Indexed US$
240,520,960
115,050,797
790,496,652
6,472,745
92,369,603
29,355,748
31,693,704
66,453,443
67,597,229
12,705,042
1,452,715,923
Average Indexed US$
7,862,568
10,604,087
6,633,448
14,522,177
10,426,571
5,972,284
4,197,013
5,544,523
4,975,504
4,754,289
3,249,948
6,371,561
Average Indexed US$
4,625,403
5,002,209
9,299,961
6,472,745
6,597,829
4,193,678
3,961,713
4,430,230
3,218,916
6,352,521
6,371,561
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Report Examples – continued
Search Criteria: Year = 1980-1990; Land/Offshore = Offshore; CAR/OP = OP
Analysis by Year
Year
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
Total
Incidents
59
32
52
55
36
68
46
50
77
66
72
613
Total Actual US$
625,022,993
253,759,917
451,086,025
500,564,395
630,076,109
817,002,988
395,630,122
715,529,416
2,459,202,423
1,575,896,131
356,048,475
8,779,818,994
Average Actual US$
10,593,610
7,929,997
8,674,731
9,101,171
17,502,114
12,014,750
8,600,655
14,310,588
31,937,694
23,877,214
4,945,118
14,322,706
Total Indexed US$
930,834,396
332,365,683
558,829,502
614,257,254
759,527,755
976,987,895
483,354,640
859,607,606
2,793,079,540
1,724,883,497
387,312,239
10,421,040,007
Average Indexed US$
15,776,584
10,746,721
10,746,721
11,168,314
21,097,993
14,367,469
10,507,710
17,192,152
36,273,760
26,134,598
5,379,337
17,000,065
Analysis by Cause
Year
(unknown)
Anchor/jacking/trawl
Blowout
Collision
Design/workmanship
Fire/lightning/explosion
Grounding
Heavy weather
Ice/snow/freeze
Impact
Leg punch through
Mechanical Failure
Misc
Pipelaying/trenching
Stuck drill stem
Windstorm
Total
Incidents
119
23
194
29
39
55
3
52
3
15
12
20
1
3
9
36
613
Total Actual US$
649,551,041
62,995,990
3,511,808,957
274,727,668
195,984,724
2,412,431,026
112,695,000
700,727,399
3,584,279
126,589,897
66,109,750
201,352,779
2,470,000
9,141,818
14,229,557
435,419,109
8,779,818,994
Average Actual US$
5,458,412
2,738,956
18,102,108
9,473,368
5,025,249
43,862,382
37,565,000
13,475,527
1,194,760
8,439,326
5,509,146
10,067,639
2,470,000
3,047,273
1,581,062
12,094,975
14,322,706
Total Indexed US$
787,345,301
73,968,201
4,232,337,494
314,890,082
230,964,999
2,750,183,686
123,514,271
844,364,720
4,227,054
142,879,339
80,090,652
261,884,319
3,678,522
10,726,674
16,320,424
543,664,269
10,421,040,007
Average Indexed US$
6,616,347
3,216,009
21,816,173
10,858,279
5,922,179
50,003,340
41,171,424
16,237,783
1,409,018
9,525,289
6,674,221
13,094,216
Analysis by Cost Category
Cost Category
Incidents
A.$1 – 2.5M
220
B.$2.5 – 5M
138
C.$5 – 10M
100
D.$10 – 15M
40
E.$15 – 20M
23
F.$20 – 25M
20
G.$25 – 30M
12
H.$30 – 35M
7
I.$35 – 40M
8
J.$40 – 45M
4
K.$45 – 50M
5
L.$50 – 60M
3
M.$60 – 70M
9
N.$70 – 80M
5
O.$80 – 90M
1
P.$90 – 100M
3
Q.$100M +
15
3,575,558
1,813,380
15,101,785
17,000,065
Total US$
371,734,493
485,037,873
704,835,244
500,383,405
403,500,962
452,334,482
321,522,442
222,047,646
297,745,283
174,064,387
236,953,425
161,415,140
579,315,292
376,417,898
83,510,524
287,012,575
4,763,208,938
Willis Energy Loss Database August 2004 7
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Report Examples – continued
Top Thirty Offshore Operating Losses, 1980 to 1990
Year
1988
1989
1988
1989
1987
1984
1987
1984
1989
1983
1988
1989
1988
1981
1982
1985
1982
1980
1988
1984
1986
1980
1989
1985
1985
1985
1985
1980
1985
Type
Platform
Platform
Platform
Well
Well
Rig
Platform
Well
Platform
Rig
FSU
Vessel
Rig
Rig
Rig
Well
Rig
Rig
Rig
Well
Rig
Rig
Rig
Rig
Well
Well
SBM
Rig
Rig
Sub Category Cause
Fire/lightning/explosion
Fire/lightning/explosion
Blowout
Blowout
Blowout
Semi sub
Blowout
Blowout
Semi sub
Blowout
Collision
Drillship
Windstorm
Heavy weather
Grounding
Jackup
Heavy weather
(unknown)
Blowout
Semi sub
Heavy weather
Blowout
Jackup
Blowout
Jackup
Blowout
Semi sub
Blowout
Blowout
(unknown)
Blowout
Semi sub
Mechanical failure
Jackup
Blowout
Semi sub
Fire/lightning/explosion
Blowout
Blowout
(unknown)
Semi sub
Blowout
Semi sub
Blowout
8 Willis Energy Loss Database August 2004
Land/Offshore
Offshore
Offshore
Offshore
Offshore
Offshore
Offshore
Offshore
Offshore
Offshore
Offshore
Offshore
Offshore
Offshore
Offshore
Offshore
Offshore
Offshore
Offshore
Offshore
Offshore
Offshore
Offshore
Offshore
Offshore
Offshore
Offshore
Offshore
Offshore
Offshore
OP/CAR
OP
OP
OP
OP
OP
OP
OP
OP
OP
OP
OP
OP
OP
OP
OP
OP
OP
OP
OP
OP
OP
OP
OP
OP
OP
OP
OP
OP
OP
Location
North Sea
Gulf of Mexico
Campos Basin
North Sea
Alaska
Nova Scotia
Gulf of Mexico
Nova Scotia
Gulf of Suez
Hainan Island
North Sea
Alaska
Mid Atlantic
Unknown
Newfoundland
Gulf of Mexico
Maharashtra
Gulf of Mexico
North Sea
Unknown
Bay of Campeche
North Sea
Java Sea
Gulf of Mexico
Gulf of Mexico
Gulf of Mexico
North Sea
Unknown
North Sea
Country
UK
USA
Brazil
Norway
USA
Canada
USA
Canada
Egypt
China
UK
USA
USA
Angola
Canada
USA
India
USA
UK
Indonesia
Mexico
Norway
Indonesia
USA
USA
USA
UK
Nigeria
Norway
Total Actual US$
1,480,000,000
520,000,000
325,000,000
255,000,000
210,711,000
206,300,000
200,000,000
187,250,000
127,500,000
125,000,000
122,500,000
110,000,000
95,000,000
93,575,000
92,124,000
82,731,043
67,409,523
63,890,000
63,577,000
63,176,000
62,654,774
62,400,000
60,200,000
60,000,000
58,500,000
56,140,000
54,901,208
53,554,000
51,458,730
willis 12pp
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Page 1
Willis Limited
Energy Loss Database
One Camomile Street
London EC3A 7LA
Telephone: +44 (0)20 7488 8111
Direct fax: +44 (0)20 7975 2402
Website: www.willis.com
GLM/2155/08/04
A Lloyd’s Broker and Member of the General Insurance Standards
Council Registered Office: Ten Trinity Square, London EC3P 3AX
Registered Number: 181116 England & Wales
willis 12pp
3/9/04
7:54 am
Page 3
Willis is over 14,500
professionals in
300 offices around
the world, all
working together
towards one goal:
helping our
clients succeed.
Designed by the Willis, Global Design Centre and printed by the Astron Group.