CRAWFORD GTS GLOBAL LARGE LOSS AN OVERVIEW

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1 CRAWFORD GTS GLOBAL LARGE LOSS AN OVERVIEW

2 ABOUT THIS REPORT One of Crawford s core competencies is our ability to handle large or complex claims, an area of expertise that resides in our Global Technical Services (GTS) service line. Whether the claim involves a catastrophic weather event, a virulent wildfire or a cyberattack, GTS is equipped to respond quickly and cost-effectively to any such occurrence. We serve a wide variety of industries, covering virtually every industry and every geographic region. We offer real world understanding of how large losses impact the business of a corporation. Our professionals are sophisticated partners with requisite academic and industry qualifications. From forensics to engineering, accounting, chemistry and beyond, we bring the necessary expertise to every conceivable situation. With our vast global footprint and breadth of services, Crawford is able to provide insight on claims by many criteria, including industry sector, product lines and prominent perils. This robust reporting capability is not only used for internal reporting purposes but also for strategic planning on a range of issues, such as succession planning and resource management. We can also provide specific reports and analysis as requested by individual. The analysis in this report is based on claims involving US$500,000 in indemnity dollars or more where Crawford GTS have received instructions. As such it is not necessarily reflective of the broader trends within the Insurance and Reinsurance Market as a whole. The enclosed report is based on open and closed claims from the date of loss. This report provides a high level overview of those claims as well as a more detailed look back over the last five years, from 2013 to 2017.

3 TABLE OF CONTENTS Overview Industry Snapshot Claims by Product Line Claims by Peril Our Client Base

4 OVERVIEW Crawford tracks claims in a variety of ways. For the purpose of this report, Crawford has identified claims by date of loss. As of 2017, Crawford has managed more than 29,000 large loss claims representing more than $75 billion in indemnity dollars for claims incurring $500,000 or more indemnity dollars. Throughout this report, you will find a more detailed breakdown of how these claims are classified - by industry sector, product line, peril and more. As the report includes open and closed claims, data is subject to change. This report in based on data gathered in February ,452 CLAIMS 25,419 CLOSED 4,033 OPEN $75.4 BILLION INDEMNITY DOLLARS (OPEN AND CLOSED CLAIMS) 1

5 TOTAL ADJUSTERS* INDEMNITY DOLLARS (USD) MANAGED BY REGION INDEMNITY DOLLARS (USD) MANAGED BY REGION (IN BILLIONS) ASIA $9.34 CANADA $3.65 CEMEA $19.87 LATAM $8.42 PACIFIC $8.41 UK/IRELAND $17.52 USA $8.15 The Central Europe/Middle East/Africa regions account for the highest amount of indemnity dollars managed, followed closely by the UK/Ireland regions. 5-YEAR REVIEW VOLUME OF CLAIMS BY NUMBER OF ASSIGNMENTS ( ) 2, , , , , In the last five years, the volume of claims received by Crawford GTS greater than US$500,000 by year has remained relatively steady. 2

6 INDUSTRY SNAPSHOT An industry snapshot shows the rapid growth of Building and Construction (a 43 percent increase from Crawford s 2015 Large Loss report), followed by Industrial and Engineering. 15 INDUSTRY SECTORS Building & Construction1 Industrials & Engineering 2 Retail 3 Agriculture & Food 4 Personal Lines 5 Marine & Transportation Mining Pharmaceutical Telecommunication Banking & Finance Cyber Risk Environmental Risk Media & Entertainment Power & Energy Technology TOP 5 INDUSTRIES BY NUMBER OF ASSIGNMENTS 6,832 Building & Construction 5,600 Industrials & Engineering 3,160 Retail 2,381 Personal Lines 2,616 Agriculture & Food Retail, Personal Lines and Agriculture & Food production have become sectors within which we are seeing not only a higher volume of claims but also higher individual claim values. Since 2015, Retail claims have seen an increase of 43 percent. Agriculture and Food claims have increased by 39 percent, and Personal Lines claims increased 35 percent. 3

7 CANADA PERSONAL LINES 798 TOP INDUSTRY CLAIMS BY REGION UK BUILDING & CONSTRUCTION 2,158 ASIA INDUSTRIALS & ENGINEERING 1,269 USA BUILDING & CONSTRUCTION 1,576 LATIN AMERICA CARIBBEAN INDUSTRIALS & ENGINEERING 460 BUILDING & CONSTRUCTION INDUSTRIALS & ENGINEERING PERSONAL LINES CENTRAL EUROPE MIDDLE EAST AFRICA INDUSTRIALS & ENGINEERING 1,265 PACIFIC BUILDING & CONSTRUCTION 1,231 Building and Construction claims are most prominent in the UK and the USA, with the largest volume residing in the UK market. Industrials & Engineering claims are most heavily concentrated in Asia, Central Europe/Middle East/Africa and the Latin America/ Caribbean regions. It is worth noting that Canada leads with Personal Lines claims. CLAIMS BY PRODUCT LINE Commercial Property accounts for 62% of total claims by product line, followed by Liability and Residential Property. 4,082 2,342 2,247 1,398 29,452 TOTAL CLAIMS ,207 MOTOR & AUTO WC/EMPLOYER S LIABILITY/MED MGMT MARINE & TRANSPORTATION CATASTROPHE RESIDENTIAL PROPERTY LIABILITY COMMERCIAL PROPERTY 4

8 PRODUCT LINES TOTAL INDEMNITY DOLLARS (USD) FROM DATE OF LOSS Commercial Property $48,932,517,326 Catastrophe $13,033,070,215 Liability $8,473,301,264 Marine & Transportation $2,248,656,255 Residential Property $1,646,502,730 WC/Employer s Liability/Med Mgmt $631,702,797 Motor & Auto $372,505,993 GRAND TOTAL $75.4 BILLION Commercial Property claims represent the highest value of indemnity dollars, followed by Catastrophe. When catastrophes occur in highly insured areas the insured losses are often total losses and in many cases these have associated business interruption claims. 5

9 5-YEAR REVIEW: PRODUCT LINES BY CLAIM VOLUME FROM In the last five years on Crawford GTS new instructions, commercial property claims have outpaced other product line claim volumes PROPERTY - COMMERCIAL LIABILITY PROPERTY - RESIDENTIAL MARINE & TRANSPORTATION CATASTROPHE MOTOR & AUTO WC ON THE INSTRUCTIONS RECEIVED BY CRAWFORD GTS COMMERCIAL PROPERTY AND LIABILITY indemnity dollars follow a similar path in value over the years 2008 to date and so statistically remain in tandem. The proportion remains consistent by region and country when we compare the number of losses and value of commercial to residential property. 6

10 CLAIMS BY PERIL Claims by perils are classified by the proximate cause of damage which include more than 44 types such as fire and/or explosions, water damage, theft/vandalism etc. Claims on All Risks Policies are classified to an All Risks Peril. TOP 5 PERILS BY NUMBER OF ASSIGNMENTS 1,675 1,796 1,954 4,641 9,957 FLOOD GENERAL LIABILITY STORM ALL RISKS FIRE CANADA 1,182 USA 1,392 UK 2,771 TOP PERILS BY REGION ASIA 1,023 PACIFIC 1,624 LATIN AMERICA CARIBBEAN 521 CENTRAL EUROPE MIDDLE EAST AFRICA 1,608 FIRE INJURY FLOOD ALL RISKS STORM GENERAL LIABILITY BREAKDOWN EARTHQUAKE Fire is the most prominent peril across the regions, with the greatest volume of claims concentrated in the UK, followed by the Pacific and Central Europe/Middle East/Africa regions. 7

11 INDEMNITY DOLLARS ALL PERILS (USD IN BILLIONS) $4.33 $3.63 $3.62 $2.90 $3.10 In the last five years, the top five perils have resulted in over $17 billion in indemnity dollars. 5-YEAR REVIEW TOP 5 PERILS BY CLAIM VOLUME FROM FIRE AND/OR EXPLOSION ALL RISKS 200 STORM FLOOD GENERAL LIABILITY CLAIMS Fire and/or Explosions lead the top 5 perils, followed by All Risks. 8

12 OUR CLIENT BASE Our client base is diverse. It includes some of the world s top reinsurers, global and local insurance companies and brokers, as well as self-insured entities. As of February 2018, Crawford has 3,015 losses recorded in the database and over $8 billion in indemnity dollars for global property and casualty companies and 4,424 records and nearly $18 billion in indemnity dollars for global property and casualty insurance brokers.* GLOBAL P&C INSURANCE COMPANIES $8,028,423,127 3,015 GLOBAL P&C INSURANCE BROKERS $17,794,427,846 4,424 * Data tracked from date of loss 9

13 FOR MORE INFORMATION CONTACT: Geoff B. Piggot Global Head of GTS & Complex Claims Crawford & Company 70 Mark Lane, London, EC3R 7NQ Phone: +44 (0) Cell: + 44(0) geoff.piggot@crawco.co.uk USA H. Terry Hunt Senior Vice President - Head of Global Technical Services Global Technical Services US Crawford & Company 675 Placentia Avenue, Suite 350 Brea, CA phone: fax: cell: Terry_Hunt@us.crawco.com Canada Paul C. Hancock Vice President Global Technical Services, Canada/Toronto Branch Manager Crawford & Company (Canada) Inc. 55 University Avenue, Suite 400, PO Box 36 Toronto, ON M5J 2H7 phone: fax: cell: paul.hancock@crawco.ca

14 UK Alister Jupp Head of Global Technical Services UK Crawford & Company 70 Mark Lane, London, EC3R 7NQ phone: +44 (0) cell: +44 (0) Latin America Roberto A. McQuattie Regional Head - Latin America Crawford & Company 201 S. Biscayne Blvd., Suite 2856 Miami, FL phone: fax: cell: Roberto_McQuattie@us.crawco.com Australia Martin Miller Director, National Global Technical Services Manager, National Crawford Forensic Accounting Services Manager, Australia, Asia Pacific Brisbane, Level 1 North Tower 527 Gregory Terrace, Fortitude Valley, QLD 4006, Australia phone: fax: cell: martin.miller@crawco.com.au Europe Mike Jones President, European Operations Crawford & Company 70 Mark Lane, London, EC3R 7NQ phone: +44 (0) cell: +44 (0) mike.jones@crawco.co.uk

15 Asia Scott Reichelt Director, Global Technical Services Asia Director, Crawford Forensic Accounting Services Asia, Singapore, Asia Pacific Crawford & Company 8 Shenton Way, #03-01 AXA Tower, , Singapore phone: fax: cell: scott.reichelt@crawford.asia Middle East Brian Clark Executive Director - Middle East Crawford & Company Al Masraf Tower, Office 904, Baniyas Road Dubai, United Arab Emirates PO Box 2976, Dubai, United Arab Emirates. phone: +971 (0) cell: +971 (50) brian.clark@crawco.me

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